Savings service Digit announced today that it is ending its free service, and in the next 100 days will begin to charge customers $2.99 monthly subscription fee. Using an algorithm that tracks your spending habits, Digit withdraws money over time and puts it in a savings account.
Existing accounts will remain free for the next 100 days. After that, those who fail to cancel their Digit account will be automatically charged, a company spokesperson told VentureBeat. The news was announced today in a brief Digit blog post.
“Users who accept the new Terms of Service will be charged the $2.99 monthly fee after their 100-day free trial is over. However, if it’s past 100 days and a customer chooses to close their account and was unaware of the fee, Digit will gladly provide a refund,” a Digit spokesperson told VentureBeat in an email.
Digit faces increasing competition from personal finance bots like Kasisto KAI, Varo Money, and Trim, who have all announced or begun to provide similar savings services. Bank of America and Mastercard have also said they plan to launch personal finance bots this year.
The company also announced today that savings bonuses will increase from 0.2 percent to 1 percent. Digit surpassed the $230 million mark in September 2016 and the $500 million mark last month.
Digit launched in 2015 and was initially only available via SMS. A Digit Facebook Messenger bot made its debut in January. Android and iOS apps are also available.
No new Digit features were announced today, but in late February Digit launched Goalmoji, a savings plan that provides updates along the way. Plans can be custom made or set for things like rent, vacation, or a phone bill.
Updated 10:50 a.m. to include additional information from a Digit spokesperson and how free Digit accounts will be treated going forward.