Digital bank Monzo has introduced an automated savings feature, becoming the first UK bank to integrate the popular ‘1p savings challenge’ directly into its app. The initiative allows users to save £668 over a year effortlessly.
The challenge involves saving increasing amounts daily—starting with 1p on day one, 2p on day two, and so on—and has long been a favourite among personal finance enthusiasts.
Monzo’s automated version transfers money directly from a user’s main account into a dedicated savings pot, making participation seamless.
According to the bank, the feature is designed for new and existing customers who sign up by January 31, 2025. Participants can pause or resume saving as needed and even make up for missed days, offering flexibility for varied financial situations.
Monzo has added a competitive incentive: £ 10,000 will be awarded to one lucky saver who completes the challenge. Additional prizes are available for users subscribed to its premium plans.
However, the savings pot does not generate interest, making it a tool for building habits rather than earning returns.
The bank developed this tool to simplify saving for its 11 million UK customers. Monzo’s Vice President of Marketing, AJ Coyne, described the initiative as “a great entry point for those starting their savings journey and a fun competition for seasoned savers.”
This new feature builds on Monzo’s successful ‘round-up’ tool, which helped customers save £229 million in 2024 by rounding transactions to the nearest pound and transferring the spare change to a savings account.
With this latest launch, Monzo continues its mission to make saving easy, reinforcing that small changes can lead to significant financial growth.
