A new tool launched by a major bank has claimed customers could save £667.95 over the year through daily savings challenges.
Savers can automatically build their savings pot through gradually increasing daily deposits.
Monzo bank has launched the UK’s first fully automated 1p savings challenge for 2025, helping customers save more through the year.
The innovative scheme transforms a popular money-saving trick, previously advocated by financial experts including Martin Lewis, into a fully automated banking feature.
The challenge works by automatically saving 1p on day one, increasing to 2p on day two, and continuing this pattern throughout the year.
One lucky customer will win a £10,000 prize if they complete the 365 day challengeGETTY By the 30th day, participants will have saved £4.64 in their savings pot.
Halfway through the year-long challenge, savers will see their balance grow to £168.36.
The daily deposits continue to increase gradually, reaching £3.65 on the final day of the year, resulting in a total savings of £667.95.
New and existing Monzo customers can join the challenge by opting in before January 31.
The savings will automatically move from customers’ personal accounts into a dedicated “challenge pot” each day.
Participants can easily monitor their savings progress through the banking app.
The scheme offers flexibility, allowing users to pause the challenge when needed and catch up on any missed days.
This marks a significant upgrade from Monzo’s previous approach, which required customers to download a separate app to set up automatic money transfers.
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AJ Coyne, vice president of marketing at Monzo, said the new “automated solution” for 2025 will help people turn small change into bigger savings.
He 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.”
To incentivise participation, Monzo is offering a £10,000 prize for one customer who completes all 365 days of the challenge.
Monzo bank has launched the UK’s first fully automated 1p savings challenge for 2025
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Additional prizes will be available for customers subscribed to Monzo’s monthly plans.
The bank has already demonstrated success with automated savings features, including its popular round-up function.
This feature, which rounds up spending to the nearest pound and transfers the difference to savings, helped Monzo customers collectively save £229million in 2024.
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