The 1p savings challenge, popularised by Martin Lewis' Money Saving Expert newsletter, helped one saver put away £667.95 over a year. However, they admit a simple mistake cost them potential extra interest.
The challenge involves saving 1p on day one, 2p on day two, and so on for 365 days, or the reverse. Either method yields £667.95. The saver, who tried it twice, found remembering to transfer money daily was a hurdle, leading them to download a tracker PDF from the Money Saving Expert website.
In 2025, Monzo became the first UK bank to automate the process with its Challenge Pot, which transfers the daily amount automatically. However, the saver notes that the Challenge Pot is not a savings account, and only Monzo Extra, Perks or Max subscribers (from £3 a month) earn 5% interest and entry into prize draws.
Not wanting to pay the subscription, the saver occasionally emptied the Challenge Pot into a separate savings account. In hindsight, they say doing this more frequently would have earned more interest. They also compare the challenge to bank round-ups, which typically save less—often under £400 over several years.
Despite the minor oversight, the saver found the automated system a game changer and says the accumulated cash eased the strain of Christmas and other expenses. They plan to be better at earning interest on their challenge money in 2026.
