Savers are being offered the opportunity to participate in a new 2025 challenge that automatically saves money for them daily, accumulating a cash pot of £700 by year’s end. Monzo, boasting more than 11 million customers, announced it as the first UK bank to launch a fully automated 1p saving challenge.
The year-long challenge operates by saving 1p on day one, 2p on day two, 3p on day three and so forth. By day 30, savers will have amassed £4.64, halfway through the challenge they’ll have £168.36 and by day 365 they’ll have saved £667.95.
This money-saving trick has been endorsed by Monzo and financial experts, including Martin Lewis, for several years. However, the digital bank stated that 2025 will be the inaugural year its customers can engage in a fully automated challenge via their banking app.
Both new and existing Monzo customers can opt into the challenge by January 31, witnessing small change automatically transferred from their personal account to a “challenge pot” daily. Individuals can monitor their savings progress, with the option to pause at any time and make up for missed days.
The bank, currently the seventh largest in the UK, has previously allowed its customers to partake in the challenge, but only through downloading a separate app which enables users to establish rules for automatic money transfers, reports Lancs Live.
AJ Coyne, the vice president of marketing at Monzo, highlighted the bank’s new “automated solution” that is set for a 2025 launch, designed to bolster people’s savings incrementally. “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,” he shared.
“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.”
Monzo also unveiled plans to reward one dedicated saver who sticks with the challenge for a full 365 days with a grand prize of £10,000. Additionally, other enticing prizes will be available for customers who opt for the bank’s monthly plans.
With UK banks increasingly embracing technology-based automated saving tools, such as round-ups, which allow savings from rounding purchases up to the nearest pound, these innovations have proven popular among consumers. Monzo reported that its round-up feature enabled customers to save over £229 million in the past year alone.