Monzo launches new feature that can help you save £668 a year without noticing

Jessica Lindsay

Published January 1, 2025 3:05pm Updated January 1, 2025 3:05pm

Monzo is the first UK bank to offer an automated 1p challenge (Picture: Shutterstock/Ascannio)

If saving isn’t your forte, this new feature from Monzo makes it effortless and, dare we say, kind of enjoyable.

The digital bank has launched its own take on the viral ‘1p savings challenge’ – where you put away 1p on the first day, 2p on the second day, and so on – allowing customers to rack up £668 throughout the year.

While the challenge itself has been around for years, it’s often recommended by personal finance buffs. It’s even backed by none other than Martin Lewis, whose Money Saving Expert site calls it ‘a clever, fun and relatively painless way to amass a surprising sum.’

By the half-year point, you’ll have a pot worth £168.36, with £667.95 at day 365 – and it comes out in such small increments you barely notice the total mounting up.

With Monzo’s ‘challenge pot’, it’s even easier still, as the money transfers from your main account without you having to lift a finger.

Although customers could previously take part by downloading a separate app, the bank is the first in the UK to offer a fully-automated 1p challenge saving tool.

Senior woman inserting coins into piggybank — A piggy bank for the digital age (Picture: Getty Images/Connect Images)

Both new and existing users can sign up to the year-long scheme by 31 January. But don’t worry if you’re not ready to commit, as it allows you to pause saving at any time, or top up the pot for any missing days.

Plus, as an added incentive, Monzo will pay £10,000 to one lucky saver who completes all 365 days, alongside other prizes for those who pay for its monthly plans.

Do be aware though, you won’t earn any interest on your ‘challenge pot’; it’s more likely to be useful for those who need to create good financial habits and make a start on a rainy day fund.

AJ Coyne, the company’s vice president of marketing, said: ‘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.’

This update is set to build on the success of its ’round up’ feature, which automatically rounds transactions up to the nearest pound and transfers the change to a separate savings account – and helped Monzo’s 11 million UK customers put away a total of £229 million in 2024.