Savers looking for a structured way to build up money over the course of the year can accumulate £667.95 by following the so-called 1p challenge.
The saving method, which has been promoted by the Money Saving Expert team, involves setting aside gradually increasing amounts each day over 12 months.
The challenge has grown in popularity in recent years, with many people beginning in January and continuing through to the end of December.
Under the standard version of the challenge, participants save 1p on January 1, 2p on January 2, and continue increasing the amount by 1p each day.
By the end of January, savers will have set aside £4.64, and at the halfway point of the year, total savings reach £168.36.
On December 31, the final daily contribution reaches £3.65, with the total amount saved standing at £667.95.
Money Saving Expert has described the challenge as a manageable way for people to save small amounts regularly.
Former Money Saving Expert writer Molly Mileham-Chappell said she completed the challenge with her husband.
She said: “Completing the challenge alone saved me £667.95 across the full year, so between the two of us we saved £1,335.90 over the 12 months.”
“If you can afford to take part, do give it a go.”
Savers looking for a structured way to build up money over the course of the year can accumulate £667.95
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PA/GETTYSome savers find the higher daily amounts later in the year difficult to manage.
To address this, an alternative version known as the reverse 1p challenge is also commonly used.
Under this approach, savers start by setting aside £3.65 on January 1.
The amount then decreases by 1p each day until reaching 1p on December 31.
The reverse method results in the same total saving of £667.95 by the end of the year.
Supporters of the reverse challenge say it can be easier to complete because larger amounts are saved earlier in the year.
Others prefer the original version, as it starts with very small daily contributions, with digital banking apps introducing tools designed to automate the process.
Monzo has linked completion of the challenge to a prize draw
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MONZOMonzo allows customers to set up the challenge within its app, automatically transferring the required amount into a savings pot each day.
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.”
Monzo customers can sign up to the challenge until January 31, 2026.
The bank said savers can pause, stop or withdraw their money at any point if their circumstances change.
For those who prefer not to use app-based tools, Money Saving Expert provides a printable tracker.
Financial advisers note that the challenge may not be suitable for everyone
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GETTYSome savers adapt the challenge by depositing weekly or monthly amounts instead of daily transfers.
Saving £55.67 per month would result in the same £667.95 total over 12 months.
Others choose to save irregular amounts and tick off the corresponding daily totals as they go.
Savers are encouraged to consider their wider financial situation and ensure essential bills and emergency funds are prioritised.
The 1p challenge is one of several structured saving methods designed to encourage regular contributions over time.