Budgeting can be a hassle for some, but Digit aims to take the effort off your hands by automating the work of saving and investing. Formerly known as Digit, Oportun does the hard work for you by calculating the right amount to input to accomplish your financial goals.
Mobile apps like Oportun can also help you pay down debt and prepare for a financially sound future. Account details and fees are accurate as of April 24, 2024.
Oportun and Your Budget
Oportun, formerly Digit, intends to help you achieve your short- and long-term financial goals. The app uses machine learning to analyze your linked bank account each day, accessing your spending habits and balance. Then it automatically withdraws money you can safely save and deposits it in the Oportun account you specify—either the Oportun savings or retirement account. Funds from your Oportun accounts can be moved back to your linked account at any time.
As part of establishing savings goals, you also can identify debt—such as student loans or credit card debt—that you want to reduce, helping ensure your budget has a solid foundation.
Oportun is FDIC-insured through its partner bank, Pathward. This means your funds are protected up to $250,000 per depositor, per bank, for each account ownership category, in the event of a bank failure.
Security
Oportun provides users with a fully encrypted app. When your information is transmitted between Oportun and your financial institution, it will be encrypted as well.
However, the Oportun app states clearly in its terms that no method of transmitting or storing information is 100% secure.
Pricing
Oportun is free for the first six months. Once that trial period ends, the app helps you bank, budget, save and invest for a fee of $5 per month.
For some, it may seem counterintuitive to pay for a budgeting app. But if it provides value by helping you budget and reach your financial goals, the cost may be worth it.
Distinguishing Features
Selecting funds to invest in can be overwhelming. With Oportun, you don’t choose individual stocks. The Oportun app matches users with a diversified portfolio of exchange-traded funds (ETFs) based on the user’s risk tolerance and investing goals. Oportun also offers the ability to save for retirement with an IRA. The app helps ensure that you don’t contribute more than is allowed per year.
Since Oportun performs automated withdrawals from external accounts, the app includes an overdraft protection feature. If your linked checking account falls below a balance you specify, you can have funds withdrawn from your Oportun savings account to prevent overdrafts.
Access and Ratings
Oportun is available for both iOS and Android. The app is currently rated 4.7 stars out of 5 on the App Store and 4.1 stars out of 5 on Google Play.
It is also accessible on desktop.
Pros
- Automated saving and investing
- Simple user interface
- Savings account is FDIC insured
Cons
- Can’t directly move money from savings to investing
- Free version has a six-month time limit
How Oportun Stacks Up
Oportun provides a simple experience for consumers wanting to achieve their financial goals, focusing on saving and investing. Through automation, it takes away the manual work, allowing users to passively reach the goals they set for themselves.
Although the app includes paying down debt as a topic within savings, the app maintains its focus. There are no features designed for money management, reporting or analytics of spending or net worth tracking.
If you’re looking for a budgeting app solely focused on saving money, paying down debt and investing concurrently, Oportun is a great budgeting app to consider. Even with its monthly fee, the app may be worth it relieve the chore of manually saving each month and making investment decisions.
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Frequently Asked Questions
What is the Oportun app and how does it work?
Oportun is a budgeting app that applies machine learning to help consumers build their savings and retirement accounts. By withdrawing small amounts of money each day into an automatic Rainy Day Fund, the app helps users slowly but consistently achieve their financial goals.
What does a budgeting app do?
A budgeting app can help you organize your finances, including bills, expenses and cash flow. Some apps even assist with retirement accounts, investing and building emergency funds.
Are budgeting apps secure?
Many budgeting apps are secure; however, none are perfect. Budgeting apps are a great way to organize your personal finances, but it is important to research each app before inputting your personal information.
When you’re looking at a budgeting app website, be sure to search for the types of security the app uses. If it is a secured app, it will likely use security methods that include 256-bit encryption, biometrics or multi-factor authentication.
What is the best free budgeting app?
The best free budgeting app is the one that best supports you and your budgeting needs. Every individual has different financial objectives, so it is vital to select a budgeting app that works well for your specific goals. Goodbudget and Empower Personal Dashboard™ are two popular free budgeting apps.
What are the key components of a basic budget?
Budgeting is a process that begins with identifying your financial goals and savings (and spending) priorities. When you know how much money is coming in and going out, you’re much better prepared to handle both the expected and unexpected financial challenges life brings.
How important are good budgeting habits?
While creating a household budget is the first step, what really makes things work is living your budget, not just planning it. The clearer your money mindset and your habits, the better your budgeting and investing efforts can serve your goals. If you have money habits you need to improve, the right app can help.
