Savers looking to build their savings effortlessly in 2025 can take advantage of a new automated challenge designed to help them accumulate nearly £700 by year’s end.
Monzo, one of the UK’s most popular digital banks with over 11 million customers, has introduced the first fully automated version of the 1p saving challenge.
The tool aims to simplify saving by automatically transferring small amounts of money daily.
The year-long challenge saves 1p on the first day, 2p on the second day, 3p on the third day, and so on.
By day 30, savers will have £4.64, halfway through the challenge, £168.36, and £ 667.95, and by day 365, they will have saved £667.95.
Throughout the challenge, savers can track their progress via Monzo’s app. Participants can also take breaks if needed and catch up later.
Money-saving experts like Martin Lewis have long recommended the 1p challenge, but this is the first time Monzo has automated it entirely within its app. Previously, customers had to use third-party tools to set up savings rules.
Monzo’s new and existing customers can opt into the 2025 challenge until January 31. The bank will automatically move daily savings from a customer’s main account into a designated “challenge pot.”
At the end of the challenge, Monzo customers can choose what to do with their savings, which can include transferring them into one of the banks’ Instant Access Pots, start investing in an Investments Pot, withdraw to their personal account to use towards their goals or continue saving with Monzo’s automated round-ups.
AJ Coyne, VP of marketing at Monzo said: “We know our customers love saving with us; this year they racked up over £220 million alone in automated round-ups. 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.
“That’s why we’re now offering another automated solution that turns small change into big savings. 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.”
Monzo has announced that one customer who completes its 365-day saving challenge will win a £10,000 prize, with additional rewards available for those on its paid monthly plans.
Automated savings features, like Monzo’s “round-ups,” are growing in popularity among UK banks. These tools round spending to the nearest pound, moving the spare change into a savings account.
In 2024, Monzo customers collectively saved £229 million using this feature.
