Long-term saving with Digit
Want to start setting aside funds for your long-term goals, including your retirement? With a Digit Retirement or long-term wealth account, you can safely save for your future automatically.
Digit offers two different options: you can set up a long-term wealth account to save for things like buying a house or starting a family. Or, you can have a Digit Retirement account to save for life after work.
How investments work
When it's safe, Digit will save money into your fund from your linked bank account. Monthly, anything saved will then be invested into your tax-advantaged Digit Retirement IRA or investing portfolio. Your first investment will happen 30-days after you set up your investment fund, then on the same date every month after that.
When funds have been moved to your investment fund — but haven’t been invested yet — you can withdraw them back to your checking account without a tax penalty. Funds can still be moved after they’ve been invested, but they may be subject to penalties from the IRS when it’s time to file your taxes.
You’ll be able to see both invested and not-invested balances in the app, and Digit will give a heads up about tax implications if you attempt to withdraw from a balance that may be subject to tax penalties.
Setting up investing
Tap on Get Started under Investments on your app home screen. Please note that an investment fund can only be set up from the Digit app and not the website at this time.
You'll be guided through an explanation of Digit investment accounts, and be able to choose to start with either a long-term wealth or retirement account.
Depending on which account you choose, we may ask a few questions about your risk tolerance to match you up with the investing portfolio that makes sense for you.
Then we'll then ask a few questions to verify your identity and get an idea of your current income and employment status.
If all looks good, you’re now ready to start saving for your future! Depending on what type of account you started with, you can also create another account for the other type of investment saving from the home screen.