Monzo, a digital bank with over 11 million customers, has introduced a new savings challenge for UK savers in 2025. This challenge, endorsed by money-saving expert Martin Lewis, aims to help individuals save over £600 by the end of the year effortlessly. The 1p savings challenge starts with saving just 1p on the first day and incrementally increases by 1p each day thereafter. By day 30, participants will have £4.64 saved, reaching £168.36 at the halfway point, and accumulating a total of £667.95 by day 365.
Unlike previous years, Monzo users can now participate directly in this challenge through their banking app, eliminating the need for separate applications. Both new and existing customers have until January 31 to enroll in the challenge. The automatic transfers will move small amounts from users’ main accounts to a dedicated “challenge pot” daily. Participants can track their growing savings, pause the challenge if necessary, and catch up on any missed days easily.
According to AJ Coyne, Monzo’s vice president of marketing, the new automated solution aims to assist customers in boosting their savings gradually. He highlighted the effectiveness of saving smaller amounts over time, particularly for those looking to adopt new financial habits in the new year. Monzo has also announced an exciting incentive for customers who complete the full 365-day challenge, offering the chance to win a £10,000 prize along with other rewards for subscribers to their monthly plans.
Automated savings tools like round-ups have gained popularity among UK banks, with Monzo users alone saving a remarkable £229 million in 2024 through this feature. As the seventh-largest bank in the UK, Monzo continues to attract a younger audience with its innovative digital banking solutions, such as digital cards and seamless app-based transfers. Initially known for its cost-effective approach to spending money abroad, Monzo now focuses on simplifying saving processes for its users.
The trend of automated saving mechanisms aligns with the growing interest in convenient and efficient financial management tools. By integrating these features directly into their app, Monzo aims to make saving money a seamless and engaging experience for its customers. With the potential to save significant amounts over time through small, incremental contributions, the 1p savings challenge offers a simple yet effective way for individuals to build up their savings without any added effort.
In conclusion, Monzo’s initiative to encourage automated savings highlights the importance of making financial planning accessible and engaging for all users. By offering a fun and rewarding savings challenge, the digital bank aims to empower individuals to take control of their finances and work towards their savings goals effectively. As the financial landscape continues to evolve, innovative solutions like the 1p savings challenge provide a glimpse into the future of effortless and impactful money management.