Why the change?
In the past few months, the Federal Reserve significantly reduced its benchmark interest rates to help support the economy due to the impacts of COVID-19. This reduces the amount our partner banks payout for savings, which in turn requires us to reduce the Savings Bonus rate at which we reward our members.
Because of this, the bonus Digit rewards you with based on your savings balance will change from 1% to 0.5% starting on May 20th, 2020.
This change was tough to avoid, and a difficult decision to make. However, we’re minimizing the impact to you and working hard to keep your bonus as high as possible. As a result, Digit's Savings Bonus still pays out 7x more than the national average for saving.
More details on how the Savings Bonus works can be found here: How does Digit's Savings Bonus work?
How does this affect my next bonus?
Because the savings bonus is paid every 3 months, your first payout after May 20th will be prorated between 1% and 0.5% based on the number of days spent on each rate.
For example, if your next bonus is due on June 1st, you would have 79 days of falling under the 1% rate since your last bonus and 11 days of falling under 0.5%.
We’re happy to be a source of financial security for you during times like the present. Your funds saved with Digit are always safe, FDIC-insured, and unaffected by fluctuations in the market.