Monzo has reintroduced its automated savings challenge for the year 2026.
This savings challenge involves starting on January 1 by saving just 1p, then increasing the daily savings by 1p each day. For instance, you would save 2p on January 2, 3p on January 3, and so forth.
Upon signing up for the challenge via the Monzo app, a Challenge Pot is created by Monzo to automatically transfer your savings.
Completing the challenge starting on January 1, 2026, would result in savings of £667.95 by December 31, 2026. Additionally, Monzo is offering a £10,000 prize to one individual who finishes the challenge by January 31, 2027.
The challenge spans 365 days from the day of the first penny saved, with an opt-in deadline of January 31, 2026. Halfway through the year, participants would have saved £168.36.
This year, Extra, Perks, and Max customers can access new features by enhancing their savings challenge. They have the option to start by saving 2p or 4p on day one, then doubling the amount each subsequent day.
Monzo suggests that by maximizing savings, individuals could potentially save £2,671.80 annually. Furthermore, Extra, Perks, and Max customers can earn 5% interest on their Challenge Pot and participate in a monthly draw to win £100, with 100 winners monthly.
In the previous year, 1.7 million Monzo customers engaged in the savings challenge, collectively saving over £360 million by November.
Marc Sfeir, Product Director at Monzo, stated, “Many of us commence the year with ambitious financial goals like saving substantial amounts, clearing debts, or revamping budgets. However, research indicates that these grand objectives often falter due to their overwhelming nature. Engaging in enjoyable savings challenges offers an alternative approach.”
Sfeir added, “The key to success lies in embracing the concept of micro-habits, where individuals start small, remain consistent, and allow progress to accumulate over time. By saving minimal amounts daily, individuals hardly notice the funds leaving their accounts. By year-end, they find themselves with significant savings. With the option to level up this year, the potential to save up to £2,671.80 annually is within reach.”
He concluded, “In 2025, 1.7 million participants joined our Savings Challenge, demonstrating that minor steps can lead to substantial gains. Our objective is clear: to make saving accessible and enjoyable. When saving becomes effortless, it transforms into a habit – and that is the catalyst for genuine financial transformation.”