Last Updated On – 04-09-2026
The Monzo 1p Saving Challenge automatically moves an increasing amount from a customer’s personal account into a dedicated Challenge Pot each day. It begins with 1p on day one, rises to 2p on day two and continues until £3.65 is transferred on day 365.
Completing the standard challenge saves £667.95 before interest. Monzo customers with an eligible subscription can also select higher saving levels, potentially reaching £1,335.90 with the 2x challenge or £2,671.80 with the 4x version.
What Is The Monzo 1p Saving Challenge?
The Monzo 1p Saving Challenge is an automated savings feature designed to make regular saving feel more manageable.
Instead of transferring a large amount at the beginning of every month, the challenge starts with one penny and gradually increases the daily contribution:
- Day One: 1p
- Day Two: 2p
- Day Three: 3p
- Day 30: 30p
- Day 100: £1
- Day 200: £2
- Day 300: £3
- Day 365: £3.65
Monzo transfers the money from the customer’s personal account into a separate Challenge Pot. If every scheduled amount is saved, the pot reaches £667.95 after 365 days, excluding interest.
The challenge does not have to begin on 1 January. Eligible subscribers can start whenever they choose, and the 365-day schedule begins from their individual starting date.
How Much Does The Monzo 1p Challenge Save?
The standard challenge saves £667.95 because it adds together every daily contribution from 1p to £3.65.
Customers with an eligible Monzo subscription may also be able to multiply each contribution.
| Challenge Level | First-Day Transfer | Final-Day Transfer | Total Before Interest |
| 1x Challenge | £0.01 | £3.65 | £667.95 |
| 2x Challenge | £0.02 | £7.30 | £1,335.90 |
| 4x Challenge | £0.04 | £14.60 | £2,671.80 |
The 2x and 4x options can build a much larger pot, but the later contributions require careful budgeting. A 4x customer would need to leave enough money in the personal account for a £14.60 transfer on the final day.
What Is The Monthly Saving Breakdown?
The following figures apply when the challenge begins on 1 January and continues without interruption.
| Month | 1x Challenge | 2x Challenge | 4x Challenge |
| January | £4.96 | £9.92 | £19.84 |
| February | £12.74 | £25.48 | £50.96 |
| March | £23.25 | £46.50 | £93.00 |
| April | £31.65 | £63.30 | £126.60 |
| May | £42.16 | £84.32 | £168.64 |
| June | £49.95 | £99.90 | £199.80 |
| July | £61.07 | £122.14 | £244.28 |
| August | £70.68 | £141.36 | £282.72 |
| September | £77.55 | £155.10 | £310.20 |
| October | £89.59 | £179.18 | £358.36 |
| November | £95.85 | £191.70 | £383.40 |
| December | £108.50 | £217.00 | £434.00 |
| Total | £667.95 | £1,335.90 | £2,671.80 |
Customers starting on another date will follow the same daily sequence, but their monthly totals will fall in different calendar months.
How Can Customers Start The Challenge?
The challenge can be started through the Monzo app when it is available on the customer’s account. The app creates a dedicated Challenge Pot and schedules the daily transfers automatically.
The usual process involves:
- Opening the Monzo app.
- Finding the 1p Saving Challenge option.
- Selecting an available saving level.
- Reviewing the interest rate and plan conditions.
- Confirming the challenge.
- Keeping enough money in the personal account for each transfer.
App menus can change, so customers should use the in-app search or savings section if the challenge is not immediately visible.
Can Free Monzo Customers Join In 2026?
Free Monzo customers were able to join the 2026 promotion by the end of January. That promotional joining window has now closed.
Customers with Monzo Extra, Perks, Max or Max + Family may be able to start the challenge at any time. Anyone joining later in 2026 should check the app because availability, subscription prices and interest rates can change.
A paid plan should not be chosen solely because of the headline interest rate without considering its monthly cost.
If a plan costs more than the interest earned through the challenge, the customer would need to value its other features for the subscription to make financial sense.
How Much Interest Could The Challenge Earn?
Eligible paid-plan customers can earn variable interest on money held in the Challenge Pot, with interest normally paid monthly.
It is important not to calculate the return by simply taking the annual interest rate and multiplying it by the final £667.95 balance. The full amount is not held for the entire year because the balance grows gradually.
At a constant 5% AER, a customer completing the standard challenge from the beginning of the year might earn approximately £11. The exact return depends on the start date, transfer timing, withdrawals and any interest-rate changes.
Estimated interest would increase with the higher saving levels, but customers should always check the current rate displayed in the app.
Interest from the Challenge Pot also forms part of a person’s total savings interest for tax purposes. This can matter when reviewing how HMRC handles savings interest data.
Can The Challenge Be Paused?
Customers can pause the daily transfers if they need temporary breathing room. They can later add money to catch up with the amounts missed during the paused period.
This flexibility may help when an unexpected bill arrives or income temporarily falls. However, pausing does not reduce the final target. The missed amount must still be added if the customer wants to finish with the complete challenge balance.
Customers can also stop the challenge completely. Ending it is different from pausing because the automatic saving schedule will no longer continue.
Can Money Be Withdrawn From The Challenge Pot?
Money can be withdrawn from the Challenge Pot when needed. Customers are not required to lock the savings away until day 365.
This makes the challenge more flexible than a fixed-term savings account, but easy access can also make it tempting to spend the balance. Anyone saving for a particular goal may find it useful to give the pot a clear name, such as:
- Emergency Fund
- Christmas Spending
- Annual Bills
- Holiday Fund
- Car Repairs
- Home Deposit
Money withdrawn during the challenge can be added back later. Customers aiming to qualify for a promotion should check whether the pot must contain a particular balance by a specified date.
What Happens If There Is Not Enough Money For A Transfer?
The challenge takes contributions from the customer’s personal account rather than automatically using money stored in another Pot. Customers should therefore keep enough available in the main balance for the scheduled transfer.
If a contribution is missed, the app may show that the challenge is behind schedule. The customer can normally add the missing amount later and catch up.
The final months require more planning than the opening months. Under the standard version, November and December require £204.35 in total. Under the 4x version, the same two months require £817.40.
Checking the next month’s expected total shortly after payday can prevent missed contributions.
Is The 1p Saving Challenge Affordable?
The standard level may suit customers who want to establish a gradual saving habit. However, the challenge becomes noticeably more demanding as it progresses.
A customer should consider:
- Whether The Main Account Regularly Has Enough Money
- Whether Income Is Stable Throughout The Year
- Whether December Is Already An Expensive Month
- Whether Other Debts Should Be Repaid First
- Whether An Emergency Fund Is Already Available
- Whether A Paid Monzo Plan Offers Sufficient Overall Value
Someone who prefers a predictable budget could save £55.66 for the first 11 months and £55.69 in the final month. This reaches the same £667.95 target without daily increases.
Is A Reverse 1p Challenge Better?
A reverse challenge begins with £3.65 and reduces the daily contribution by one penny until the final 1p transfer. It still saves £667.95 overall.
This method places the largest contributions at the beginning rather than the end. It may suit people who want smaller payments during November and December, although January can also be financially difficult after Christmas.
Monzo’s automated challenge follows the increasing daily structure. A reverse version may therefore need to be managed separately through manual transfers or another savings arrangement.
How Does It Compare With Other Savings Options?
The 1p challenge is primarily a habit-building tool. It is not automatically the highest-return home for every saver.
| Option | Main Advantage | Main Limitation |
| Monzo 1p Challenge | Automated Daily Saving | Contributions Rise Throughout The Year |
| Fixed Monthly Transfer | Predictable Monthly Cost | Requires A Regular Commitment |
| Easy-Access Savings | Flexible Withdrawals | Rates Can Change |
| Lifetime ISA | Potential Government Bonus | Withdrawal Conditions Apply |
| Premium Bonds | Chance To Win Tax-Free Prizes | No Guaranteed Return |
A Lifetime ISA may be more suitable for an eligible person saving towards a first home or later life, although the withdrawal restrictions must be understood. The timing of the Lifetime ISA government bonus can also affect when money appears in the account.
Premium Bonds offer another alternative for longer-term cash savings, although returns depend on prize wins rather than guaranteed interest. Winners may notice a PBZ payment on their bank statement when prize money is sent to their nominated account.
Was There A Monzo Prize Draw In 2026?
Monzo offered promotional prize draws for customers who joined the 2026 challenge by 31 January 2026 and met the applicable conditions.
The joining deadline has passed, so customers beginning later in the year should not assume they will receive an entry. Existing participants should check their challenge progress because missed contributions may need to be caught up before the relevant assessment date.
The prize draw should be viewed as an additional promotion rather than the main reason to save. No participant is guaranteed to win.
Is The Monzo 1p Saving Challenge Worth It?
The challenge can be worthwhile for customers who struggle to remember regular transfers and benefit from seeing daily progress. Automation, flexible withdrawals and gradual contributions make it more approachable than a large monthly savings target.
The main drawback is that the challenge becomes most expensive near the end. Customers who begin on 1 January must save £108.50 during December at the standard level, while the 4x challenge requires £434.
It is also important to compare the cost of a paid Monzo plan with the likely interest earned. A subscription may provide several useful banking features, but joining only to earn interest on the standard challenge may not produce a net financial gain.
For suitable customers, the challenge offers a simple route to building £667.95 or more. Its real value comes from creating a repeatable saving habit rather than merely collecting pennies.
FAQs
How Much Does The Monzo 1p Challenge Save?
The standard challenge saves £667.95 before interest. The 2x level saves £1,335.90, while the 4x level saves £2,671.80.
Can Someone Start The Challenge After January?
Eligible Monzo Extra, Perks, Max and Max + Family customers can start at other times of the year. The challenge then runs for 365 days from their starting date.
Can A Free Monzo Customer Start Now?
The 2026 free-account joining window ended on 31 January. Customers should check the app for current eligibility and any future promotional joining periods.
Can The Challenge Be Paused?
Yes. Customers can pause the automatic transfers and add money later to catch up with missed contributions.
Can Money Be Taken Out Before The Challenge Ends?
Yes. Money can be withdrawn from the Challenge Pot, although removing it may leave the customer below the final target.
Does The Challenge Pay Interest?
Eligible Challenge Pots earn variable interest paid monthly. The exact rate should be checked in the Monzo app before joining.
Does The Money Come From Another Monzo Pot?
The scheduled transfers are taken from the customer’s personal account balance. Customers should not assume the challenge will automatically take money from another Pot.
Is The Money Protected?
Eligible deposits held with Monzo receive protection under the applicable UK deposit-protection arrangements, subject to the prevailing limit and eligibility rules.