Monzo to launch 1p challenge that could save you nearly £700

The major bank - which is the seventh largest in the UK and has more than 11 million customers - will become the first in the country to create a fully automated 1p savings challenge, starting in 2025.

The year-long challenge works by saving 1p on the first day, then 2p on the second day, 3p on the third day, and so on.

By day 30, Monzo account holders will have saved £4.64, halfway through the challenge they will have accumulated £168.36, and by day 365, they will have saved £667.95.

The money trick has been advocated by Monzo and money-saving experts, including Martin Lewis, for several years.

However, the digital bank said that 2025 will be the first year that its customers can participate in a fully automated challenge through their banking app.

How to sign up for Monzo's 1p savings challenge

New and existing Monzo customers can opt into the challenge before January 31, 2025.

Once you have signed up customers will see small changes automatically moved from their account to a “challenge pot” daily.

People can track the progress of their savings and also have the option to take a break at any time and catch up on missed days.

Will you be opting in to the new Monzo 1p savings challenge in 2025? (Image: Monzo/PA Wire) The bank has previously let its customers participate in the 1p challenge but only by downloading a separate app which allows people to set up rules to move money around automatically.

Vice president of marketing at Monzo, AJ Coyne, said the new “automated solution” for 2025 will help people turn small change into bigger savings.

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Mr Coyne said: “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.”

Monzo also revealed that it would be offering one customer who completes the full 365 days a chance to win a £10,000 prize, while other prizes will be on offer for customers who pay for its monthly plans.