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Monzo, one of Britain's most popular banks, has launched a new online tool that could help customers save over £600 annually. The bank's app now allows users to automatically participate in the 1p savings challenge throughout 2025.

This simple savings hack involves setting aside pennies each day, which gradually accumulate into pounds as the year progresses. By following the '1p savings challenge', you could build up a handy savings pot worth £667.95 by December 31, 2025.

Even if you only saved until the end of November, you would still have tucked away an impressive £559.45, which could alleviate the cost of buying presents next Christmas. The '1p challenge' is likely one of the easiest and most well-known methods to grow your money pot for winter 2025.

It's also a great way to cultivate the habit of saving every day by starting small and focusing on the final outcome. The best part is that because the daily savings amount in January won't significantly impact your finances, you can easily catch up or start at the end of the month instead - all you'll need to do is set aside £4.96.

The only downside to this savings plan is that the amounts increase as the year progresses.

Monzo's vice president of marketing, AJ Coyne, commented on consumer habits: "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."

Adding an incentive, Monzo is providing a £10,000 prize for one lucky customer who completes the full challenge by year-end.