January 1st 2025.
Monzo, a popular digital bank in the UK, has recently launched a new feature that is making saving money easier and even enjoyable for its customers. The bank has introduced its own version of the viral "1p savings challenge" where users can save up to £668 throughout the year by gradually increasing their daily savings, starting with 1p on the first day and adding an additional penny each day.
While the concept of this challenge has been around for some time, it has gained popularity among personal finance enthusiasts. In fact, even financial expert Martin Lewis from Money Saving Expert recommends it as "a clever, fun and relatively painless way to amass a surprising sum." And with Monzo's new "challenge pot" feature, saving money has become even more effortless as the money is automatically transferred from the user's main account without them lifting a finger.
Previously, customers could participate in this challenge by using a separate app, but Monzo is the first bank in the UK to offer a fully-automated 1p challenge saving tool. This is being seen as a major step towards making saving money more accessible and convenient for everyone.
The "challenge pot" is like a digital piggy bank for the modern age. Both new and existing users can sign up for the year-long scheme by 31 January. And for those who are not ready to commit, there is an option to pause saving at any time or top up the pot for any missed days. As an added incentive, Monzo is offering a cash prize of £10,000 to one lucky saver who completes all 365 days, along with other rewards for users who opt for the bank's monthly plans.
However, it's important to note that the "challenge pot" does not earn any interest on the savings. It is more of a tool to help users develop good financial habits and start building a rainy day fund. According to AJ Coyne, Monzo's vice president of marketing, this challenge is a great way for beginners to start their saving journey and a fun competition for those who are already in the habit.
This new feature is expected to build on the success of Monzo's "round up" feature, where the bank automatically rounds up transactions to the nearest pound and transfers the change to a separate savings account. In 2024, this feature helped Monzo's 11 million UK customers save a total of £229 million. It just goes to show that every penny counts, and by taking care of the small amounts, the bigger savings will take care of themselves.
Do you have a similar story to share? Monzo encourages its customers to share their experiences by emailing them at [email address]. They are always looking for ways to make money management easier and more enjoyable for their users. So, if you have any suggestions or feedback, don't hesitate to reach out. After all, it's all about helping each other on our financial journeys.
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