Get ready for a money-saving challenge that's back by popular demand! A major bank has an ingenious plan to help you save over £660 in 2026, and you won't even feel the pinch!
Monzo, a leading financial institution, is relaunching its 1p Saving Challenge, a unique initiative that's already proven successful. This challenge is all about helping you build your savings effortlessly, and it's a great way to start the new year on a financially savvy note.
Here's how it works: You sign up, and Monzo creates a dedicated 'Challenge Pot' within your app. Over the course of 365 days, starting from the day you save that first penny, the app automatically adds a penny to your pot each day. So, on day two, you save 2p, on day three, 3p, and so on, until you reach the final day, where you'll be putting away £3.65.
By the end of the challenge, you'll have saved a total of £667.95, according to Monzo. But here's where it gets controversial: Monzo recently announced a cut in the interest rate for this challenge, from 3.50% AER to 3.25% AER, effective January 6th, due to the Bank of England's base rate decision.
Despite this change, the challenge remains an attractive option for savers. In 2025, an impressive 1.2 million customers participated, collectively saving a whopping £308 million. And the best part? It requires zero effort! The challenge is fully automated, so you can sit back and watch your savings grow without lifting a finger.
But wait, there's more! If you're a premium Monzo account holder, you can earn an even higher interest rate of 5% on your Challenge Pot. This means you could earn an extra £33 on top of your savings, pushing your total to over £700. Now, that's a nice little bonus!
And this is the part most people miss: completing the challenge also enters you into a prize draw, where you could win a substantial £10,000. So, not only are you saving money, but you also have a chance to win big!
So, are you ready to take on this challenge and boost your savings? It's a great way to start the year with a financial boost. Remember, every little bit counts, and with this challenge, you can save without even noticing. It's a win-win situation!
What do you think about this saving strategy? Do you plan to give it a go? We'd love to hear your thoughts and experiences in the comments below!
