Monzo has introduced its automated savings challenge for the year 2026. This unique savings challenge kicks off on January 1, where participants begin by saving just 1p. Each subsequent day, the savings amount increases by 1p, meaning 2p on January 2, 3p on January 3, and so forth.

By enrolling through the Monzo app, participants will have a Challenge Pot set up by Monzo to seamlessly transfer their savings. Those who start on January 1, 2026, and successfully complete the challenge will have accumulated £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 initial savings date, with a deadline to opt in by January 31, 2026. Those who complete half the challenge will have saved £168.36. Extra, Perks, and Max customers can access enhanced features by opting to save 2p or 4p on the first day, followed by incremental increases.

Monzo suggests that by maximizing their savings, customers can potentially save £2,671.80 annually. Extra, Perks, and Max customers are also eligible for a 5% interest rate on their Challenge Pot and automatic entry into a monthly draw to win £100, with 100 winners each month.

A total of 1.7 million Monzo customers participated in the savings challenge this year, collectively saving over £360 million by November.

Marc Sfeir, Product Director at Monzo, emphasized the effectiveness of small, consistent savings habits over lofty financial goals. The incremental approach of the savings challenge, starting with minimal amounts and gradually increasing, aims to make saving effortless and enjoyable, leading to long-term financial changes.