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Bank's new money-saving 1p challenge automatically saves you almost £700

Football | December 28, 2024 12:39 AM CST

Monzo customers can make use of an innovative challenge introduced by the digital bank to stash away £700 effortlessly by end of year. Boasting over 11 million users, Monzo claims to be the pioneer in establishing a fully automated penny-saving adventure within UK banking.

Beginning with a modest 1p on day one and incrementally increasing by a penny daily, participants see their pot grow progressively. By the time savers hit the 30-day mark, they'll have pocketed £4.64, soaring to £168.36 at the halfway milestone, and culminating in a substantial £667.95 by the end of 365 days.

The tactic is a long-time favourite amongst savvy savers, with experts like endorsing it for years. However, 2025 marks the first occasion Monzo makes it possible to engage in this automatic saving spree directly via its app.

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Clients - both new and current - are invited to jump on board by January 31st, setting up their accounts for small daily transfers into a designated "challenge pot". Save-tracking is seamless, with freedom to pause any time and make up for any lost time.

Previously also active in the micro-saving scene, Monzo enabled users to join such challenges through external apps that managed rule-based fund movements. This move aims to simplify the process, reports .

AJ Coyne, the vice president of marketing at Monzo, has highlighted the benefits of their new "automated solution" set for 2025, which aims to boost savings by accumulating small change. "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," he explained.

"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."

In a twist, Monzo has announced a £10,000 prize draw for one lucky customer who sticks with the 365-day challenge, alongside other rewards for subscribers to its monthly plans. The bank also noted that its round-up feature, which rounds up transactions to the nearest pound and stashes the difference in savings, helped customers save £229 million in 2024.