A major bank has announced the return of its popular savings pot that could help you save almost £670 in 2026. Monzo says its fully-automated Saving Challenge 2026 will return on New Year’s Day 2026, after 1.7 million Monzo customers took part in 2025.

After you’ve signed up, Monzo will create a Challenge Account and start saving small and incrementally increasing amounts on your behalf. It starts with just 1p on day one, with the bank moving an extra penny each day from your personal account into your Challenge Pot (2p on day two, 3p on day three etc.) Unlike other savings challenges some banks encourage customers to try, the process is fully automated, allowing you to let your account do the saving for you without having to manually tranfer funds.

By day 30, customers will have saved £4.64, with £168.36 put aside by halfway through the year. By day 365, your savings will total £667.95, all of which is collected without you having to lift a finger.

From the day you save your first penny, the challenge will last for 365 days and those that complete it will be in with a chance of winning £10,000 in a prize draw.

100 customers who have an Extra, Perks, Max or Max + family plan (excluding free trials) can also win £100 in separate prize draw every calendar month from February 2026 to January 2027.

You can take out your savings, pause or stop your challenge anytime.

Customers can start saving from January 1. However, if you’ve got a free, Plus or Premium current account with the bank, you have until January 31, 2026 to join the 1p Saving Challenge.

Only customers with Monzo Extra, Perks or Max can join from that point on.

This year, those with Extra, Perks, and Max customers can unlock other additional features, including:

• Level Up Your Challenge: Choose 2x or 4x savings levels to put aside £2,671.80 in a year (meaning you’ll save 2p or 4p on day one, 4p or 8p on day two etc.)
• 5% interest on your Challenge Pot

You can find full terms and conditions here.

Marc Sfeir, Product Director at Monzo said: “Last year, we saw over a million people take part in the Saving Challenge, proving that small steps can lead to big wins.

“For 2026, we’ve made it even more rewarding – with new levels, higher interest on savings, and of course, we had to bring back the chance to win that £10,000.

“It’s all part of our mission to help people grow their money with confidence and build habits that make their money work harder.”