Monzo is offering its customers a clever way to save, with the potential to amass a £668 cash pot by 2025 through a new savings challenge. The digital bank, which serves over 11 million users, is introducing an automated 1p savings challenge as we usher in the new year, making it effortless for customers to put money aside daily.
The challenge is simple yet effective: save 1p on the first day, 2p on the second, 3p on the third, and so on. By day 30, participants will have saved £4.64.
Reaching the midpoint of the challenge means having tucked away £168.36, and by the end of 2025, savers can look forward to a tidy sum of £667.95.
Monzo has announced that 2025 marks the inaugural year their customers can engage in this fully automated challenge via the banking app, which also allows them to monitor their savings journey. Customers are given the flexibility to pause their daily savings at any point and makeup for missed days later, or they can choose to exit the challenge entirely whenever they wish.
For those who persevere until day 365, there’s an enticing incentive—a prize draw entry with a grand prize of £10,000, alongside other rewards available to those subscribed to Monzo’s monthly plans, reports the Express.
The challenge is open to both new and existing Monzo customers, but to participate, one must opt in by the deadline of 11.59pm on January 31. Once enrolled, you’ll witness small amounts seamlessly transferring from your main account into a dedicated “challenge pot” each day throughout the year.
AJ Coyne, Monzo’s Vice President of Marketing, has highlighted the potential of the new “automated solution” set for 2025 to aid individuals in transforming loose change into more substantial savings. He commented: “Many of them will also be looking to make habitual changes in January, and we know that putting away smaller amounts over time works well for them. This challenge is a great entry point for those at the start of their journey, and a fun competition for those who are already in the habit.”
The concept, advocated by Monzo alongside money-saving gurus including Martin Lewis, is not new and has been encouraged for some years now.
A number of UK banks offer similar automated methods to help people incrementally save small sums, such as cost rounding to the nearest pound with the excess going into a savings account. According to Monzo, this feature helped its customers save a remarkable £229 million in 2024.