As the festive cheer fades, many across the UK are facing the sobering reality of their post-Christmas bank balances. The cost of gifts, feasts, and celebrations can leave wallets feeling decidedly lighter. However, a clever and methodical savings strategy is gaining traction for 2026, promising to turn pennies into a significant pot of over £667 by next Christmas.
The Simple Power of the 1p Challenge
This popular method, often called the Monzo 1p challenge, operates on a beautifully simple principle. You begin by saving just a single penny on the first day. On day two, you save 2p, on day three it's 3p, and so on, increasing the amount by one penny each day. If you maintain this pattern for a full year, the small, incremental additions accumulate into a substantial sum.
By the 365th day, when you deposit £3.65, your total savings will have reached an impressive £667.95. This total is calculated purely from the daily deposits and does not include any potential interest earned, which could add a little extra to your final pot.
Real-World Success and Prize Draw Incentives
The effectiveness of this challenge was recently highlighted by a Reddit user who credited it with rescuing their festive season. After their phone broke just before Christmas, they used savings from the challenge to purchase a replacement within a £562 budget. They noted they didn't even complete the full 365 days but had saved enough to cover most of the cost.
To encourage participation, Monzo adds an exciting incentive. Participants who complete the challenge and opt-in are entered into prize draws with opportunities to win large cash prizes, such as £10,000. The rules to qualify for this draw are specific: you must have a Monzo personal current account or a paid plan, be over 18 and a UK resident, and start the challenge before the end of January 2026.
Flexibility and How to Get Started
Understanding that life can disrupt the best-laid plans, the challenge is designed with flexibility. If you miss a day, you can pause and catch up later. You are also permitted to withdraw money if necessary, as long as you return it to your Challenge Pot to meet the final target.
To begin, you need a Monzo personal account. Your personalised 365-day challenge starts whenever you activate it, but you must begin before 11:59pm (GMT) on 31 January 2026. The final requirement to be in with a chance of winning the £10,000 prize is to have at least £667.95 in your Challenge Pot by the 365th day.
This structured approach to saving offers a manageable path to financial recovery after the holidays, proving that consistent, small actions can lead to a very rewarding outcome by next Christmas.
