High street bank NatWest has issued a timely announcement for customers looking to boost their financial health in the new year, promoting a simple savings strategy that could leave them £667.95 better off by next December.
The Power of a Penny: How the Challenge Works
The concept, which has been endorsed by money-saving expert Martin Lewis, is remarkably straightforward. It's known as the 1p Savings Challenge. On the first day of the year, you save just one penny. On the second day, you save two pence, and on the third, three pence. This incremental increase continues every single day throughout the year.
By the final day of December, you will be setting aside £3.65. If you maintain the discipline for the full 365 days, your total savings will amount to £667.95. NatWest, which has a significant presence including branches in cities like Birmingham, highlights this as a manageable way to build a substantial sum through small, daily actions.
Martin Lewis previously explained the maths to viewers on his ITV show, stating: "There's a big savings community out there who do this, it's called the 1p Challenge. Basically, you save a penny on the first day of the year in a jar or piggy bank, 2p on the second, 3p on the third and keep going throughout the year."
A Detailed Look at the Year-Long Plan
The bank provides a clear breakdown of how the savings accumulate over time. The journey starts with very modest daily deposits:
- Day 1: £0.01
- Day 2: £0.02
- Day 3: £0.03
By day 11, the total saved would be just 66 pence. The amounts gradually become more noticeable. By the time you reach day 100, you are adding a full pound, and by day 200, you are depositing £2.00. The pattern continues until the final stretch:
- Day 300: £3.00
- Day 301: £3.01
- Day 365: £3.65
Following this plan flawlessly means you would enter the next New Year's Day with £667.95 in your savings pot, achieved through consistent, incremental effort.
Beyond the 1p: Customising Your Savings Journey
NatWest also suggests that savers can adapt the challenge to suit their own financial circumstances for an even more impressive result. The core principle remains the same: start with a chosen amount and increase your savings by that same figure at a regular interval.
For instance, you could begin by saving £1 on day one, then £2 on day two, £3 on day three, and so on. The bank encourages customers to decide on a frequency—daily, weekly, or monthly—that works for them. The key takeaway is that watching your savings grow through this structured method can be a powerful motivator and a practical step towards larger financial goals.
This initiative from NatWest, a bank that competes with rivals like Santander, HSBC UK, Lloyds Bank, and Barclays, underscores a shift towards helping customers build savings habits gradually. It demonstrates that significant sums can be amassed not necessarily through large windfalls, but through persistent, small contributions.
