Digital bank Monzo has announced the return of its hugely popular savings challenge for 2026, this time with a major incentive: a £10,000 prize draw for one participant who completes the year-long task. The initiative, which uses a simple 'penny-a-day' increasing formula, proved a massive hit in 2025, with 1.7 million customers collectively setting aside over £360 million by November.
The Mechanics of the Monzo Savings Challenge
The concept is designed to build a savings habit through small, manageable steps. Participants begin by saving just one penny on the first day. The amount increases by a single penny each subsequent day: 2p on day two, 3p on day three, and so on. By the final day of the year, you are saving £3.65. If started on 1st January 2026 and maintained every day, the cumulative total saved by 31st December 2026 will be £667.95.
The feature is available to customers subscribed to Monzo Extra, Monzo Perks, or Monzo Max. It offers full flexibility, allowing users to start on any date, and to pause, stop, or withdraw their funds at any time without penalty. All money saved within the challenge also earns interest at Monzo's prevailing rate.
A £10,000 Incentive to Boost Financial Resolutions
New for the 2026 challenge is a significant cash prize designed to motivate savers to see the challenge through. Monzo will enter every customer who successfully completes the full 365-day cycle into a draw to win £10,000. This major reward adds an exciting layer to what is already a proven method for building substantial savings from tiny daily contributions.
Marc Sfeir, Product Director at Monzo, explained the psychology behind the challenge's success. "Most of us start the year with big financial resolutions - save thousands, pay off debt, overhaul our budgets," he said. "But research shows those big goals often fail because they feel overwhelming. Fun savings challenges take a different approach."
Building Wealth Through Micro-Habits
Sfeir emphasised that the secret lies in the science of micro-habits. "Start small, stay consistent, and let progress compound over time," he advised. "By saving just a penny on day one, two pennies on day two, and so on, people barely notice the money leaving their account - but by the end of the year, they’ve saved £667.95."
He also highlighted that by 'levelling up'—effectively doubling the daily amounts—savers could accumulate up to £2,671.80 in a single year. The staggering participation figures from 2025 demonstrate a clear public appetite for accessible, engaging financial tools. "Our goal is simple: make saving accessible and even fun," Sfeir added. "Because when saving feels effortless, it becomes habit forming - and that’s how real financial change happens."
With the new £10,000 prize on offer, Monzo is betting that even more of its customers will be inspired to turn their financial resolutions into a steady, rewarding reality throughout the coming year.
