A UK bank is giving customers the chance to automatically build a £668 cash pot in 2025 as part of a new savings challenge.
Monzo, which boasts more than 11 million customers, is launching an automated 1p savings challenge for the new year, which allows customers to automatically save money every day.
The year-long challenge works by saving 1p on day one, 2p on day two, 3p on day three, and so on, so by day 30 savers will have built up a pot of £4.64.
By the halfway point of the challenge, customers will have saved £168.36 and by the end of 2025, they will have a cash pot of £667.95.
Monzo said 2025 will be the first year that its customers can take part in the fully automated challenge through their banking app, where they can keep track of their savings progress.
Customers will also have the option to pause daily savings at any time and catch up on missed days by adding money later. Alternatively, you can opt out of the challenge completely at any time.
But those who make it to day 365 of the challenge will be granted the added bonus of being entered into a prize draw for a chance to win £10,000, while other prizes will be on offer for those who pay for Monzo’s monthly plans.
Both new and existing Monzo customers can take part in the challenge, but you need to opt in before the deadline of 11.59pm on January 31.
Once you’ve opted in, you’ll see small change automatically move from your personal account to a “challenge pot” each day of the year.
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.”
The money-saving trick has been advocated by Monzo and money-saving experts, including Martin Lewis, for several years.
Several other UK banks have introduced similar automated savings options to help people save small amounts of money every time they spend, including round-ups which automatically rounds people’s spending to the nearest pound and transfers the change to a separate savings account.
Monzo said this feature helped its customers put away a total of £229 million in 2024.