Last year, Monzo introduced a new feature to help making saving that little bit easier – and it’s officially back for 2026.
In 2025, the digital bank launched its own take on the viral ‘1p savings challenge’ – where you put away 1p on the first day, 2p on the second day, and so on – allowing customers to rack up £668 throughout the year.
The initiative was a massive success, with 1.7 million Monzo customers taking part, collectively saving over £360 million by November. And as of today, January 1, 2026, it’s making a triumphant return.
The challenge itself has been around for years, and is often recommended by personal finance buffs. It’s even backed by none other than Martin Lewis, whose Money Saving Expert site calls it ‘a clever, fun and relatively painless way to amass a surprising sum.’
By the half-year point, you’ll have a pot worth £168.36, with £667.95 at day 365 – and it comes out in such small increments you barely notice the total mounting up.
With Monzo’s ‘challenge pot’, it’s even easier still, as the money transfers from your main account without you having to lift a finger.
Both new and existing users can sign up to the year-long scheme until January 31. And don’t worry if you’re not ready to commit for the whole thing, as it allows you to pause saving at any time, withdraw your savings whenever you want, and top up the pot for any missing days.
Plus, as an added incentive, Monzo will pay £10,000 to one lucky saver who completes all 365 days. Even if you don’t make it an entire year, all players will still be in with a chance of snagging £100, with 100 winners chosen each month .
The online bank has also introduced new features for Extra, Perks, and Max customers for 2026. Through Level Up, anyone wanting to level up their savings game this year can choose 2x or 4x savings levels to end up with an extra £2,671.80 in a year – meaning you’d save 2p or 4p on day one, 4p or 8p on day two and so on.
And, unlike last year, players with these paid-for Monzo accounts can now earn interest on their challenge pot – 5% to be exact.
Still using the same savings account you opened at 16?
According to recent data, the average consumer saves around 11% of their earnings. However, almost half of all savers could be missing out on substantial returns — with almost one in four of respondents admitting to never having switched savings accounts.
Rachel Springall, a personal finance advisor with over 20 years of experience, tells Metro: ‘Trust is a big part of building a savings pot, so many do not want to risk their hard-earned cash and feel more comfortable staying with their existing bank. There is also an argument that, due to years of low interest rates and high inflation, savers may feel it’s not worth switching their pots, but that’s not true.’
She continues: ‘Switching doesn’t take much effort, and it’s important to get into the habit of earning a rate that can outpace the eroding effect of inflation.’
Marc Sfeir, Product Director at Monzo, comments: ‘Last year, we saw over a million people take part in the Saving Challenge, proving that small steps can lead to big wins.
‘For 2026, we’ve made it even more rewarding – with new levels, higher interest on savings, and of course, we had to bring back the chance to win that £10,000. It’s all part of our mission to help people grow their money with confidence and build habits that make their money work harder.’
This update was initially launched to build on the success of Monzo’s ’round up’ feature, which automatically rounds transactions up to the nearest pound and transfers the change to a separate savings account – allowing 11 million Brits to put away a total of £229 million in 2024.
It really proves the saying: look after the pennies, and the pounds will look after themselves.
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