- The digital bank will pay £10,000 to one lucky customer who takes part in the challenge
Monzo has made the viral ‘1p savings challenge’ official by launching a feature that can save customers almost £700 a year.
In the decades-old 1p challenge, savers set aside 1p on the first day of the year, 2p on the second, 3p on the third, and so on.
The challenge can see savers amass a pot of £168.36 in the half-year and £667.95 if they complete every day of the 365-day period.
Now the digital bank has launched a new feature for its customers to automatically participate in the challenge.
Monzo users can sign up to the plan before January 31 and are invited to set up a “challenge pot” that will last for 365 days.
Customers can pause their savings at any time, as well as top up the pot for the remaining days.
Appy Days – 1p Savings Challenge can be set up using the Monzo smartphone app
The cash saved as part of the challenge will not earn interest, meaning it will lose value in real terms once inflation is taken into account.
However, the 1p challenge can be valuable as it encourages a savings culture that can encourage non-savers to start accumulating cash.
Additionally, Monzo will pay £10,000 to a saver who completes 365 days of the savings plan.
Monzo’s AJ Coyne said: “This challenge is a great entry point for those starting their journey and a fun competition for those already in the habit.”
Monzo, which recently reached 11 million customers in the UK, was ranked the number one bank by customers in terms of overall satisfaction this year, closely followed by Starling and Chase.
Four in five Monzo customers said they were “extremely likely” or “very likely” to recommend a Monzo current account to friends or family.