Monzo has reintroduced its automated savings challenge for the year 2026.

The savings challenge involves starting on January 1 by saving just 1p and gradually increasing the daily savings amount by 1p each day. For example, you would save 2p on January 2, 3p on January 3, and so forth.

By signing up through the Monzo app, a Challenge Pot is created for participants, and the savings are automatically transferred.

If you begin the challenge on January 1, 2026, and successfully complete it, you will have saved £667.95 by December 31, 2026. Additionally, Monzo is offering a £10,000 prize to one person who completes the challenge by January 31, 2027.

The challenge runs for 365 days from the first saved penny, and the deadline to opt in is January 31, 2026. If you participate for half a year, you could save £168.36.

Extra, Perks, and Max customers can access new features this year, allowing them to enhance their savings challenge by opting to save 2p or 4p on the first day, doubling the amount each day.

Monzo states that by maximizing savings, there is potential to save £2,671.80 annually. Furthermore, Extra, Perks, and Max customers have the opportunity to earn 5% interest on their Challenge Pot and be included in a monthly prize draw to win £100, with 100 winners selected each month.

Over 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, emphasizes the effectiveness of starting small with savings challenges to achieve significant financial goals. The approach is based on micro-habits, where consistent small steps lead to substantial savings over time. By making saving effortless and even enjoyable, Monzo aims to foster lasting financial habits and positive change.