Monzo has introduced a straightforward money-saving strategy that could help customers accumulate over £600 annually, potentially covering festive expenses or holiday costs. The 1p Saving Challenge, accessible to Monzo users, involves daily automated transfers that gradually increase, resulting in significant savings by year-end.
How the 1p Saving Challenge Works
According to Monzo's blog on the challenge, participants start by saving 1p on the first day, 2p on the second, and continue incrementally until they save £3.65 on day 365. This method yields a total of £667.95 over the year. If you begin on January 1 and maintain the challenge, by December 25 you will have saved over £600, which can help cover Christmas dinner and gifts. The money is stored in a separate pot, preventing accidental spending, and you can pause or withdraw funds at any time.
Eligibility and Enhanced Features
Monzo notes that customers with a free current account must start the challenge before January 31, 2026. After that, it is only available to those with Monzo Extra, Perks, or Max subscriptions. These premium members can unlock higher saving levels, saving 2x or 4x the standard amount, and are entered into monthly £100 prize draws while earning 5% AER (variable) interest on savings, paid monthly.
Alternatives for Non-Monzo Customers
Martin Lewis's Money Saving Expert (MSE) website also promotes the 1p Savings Challenge for 2026. For those not using Monzo, MSE suggests using a jar for cash savings, depositing loose change daily, or manually transferring funds via online banking. However, daily transfers can be tedious, so MSE recommends saving the month's total in one go or setting up a standing order for £55.67 per month (totaling £668.04, giving an extra 9p). Starting late? You can either add the missed amounts from day one or simply begin from today's penny. Every contribution helps, even if you don't reach the full £600.
For more details, including a helpful money chart and adaptation tips for different financial situations, visit the MSE website.
