New banking tool could help customers save almost £700 a year

One of Britain's most popular banks have released a new online tool that aims to help customers save more than £600 a year.

Monzo customers can now make use of the bank's app to automatically take part in the 1p savings challenge across 2025. One of the simplest savings hacks involves putting away pennies every day. These gradually accumulate into pounds as the year progresses.

By adhering to the '1p savings challenge', you could amass a useful savings pot worth £667.95 by December 31, 2025. Even if you only saved until the end of November, you would still have stashed away an impressive £559.45, which could ease the burden of buying presents next Christmas.

The '1p challenge' - as it's commonly known - is likely one of the easiest and most well-known methods to build your money pot for winter 2025. It's also an excellent way to develop the habit of saving every day by starting small and focusing on the final outcome.

The best part is that because the daily savings amount in January won't significantly impact your finances, you can easily catch up or start at the end of the month instead - all you'll need to do is set aside £4.96. The only drawback to this savings plan is that the amounts increase as the year progresses.

AJ Coyne, vice president of marketing at Monzo, said: "Many of them will also be looking to make habitual changes in January, and we know that putting away smaller amounts over time works well for them. This challenge is a great entry point for those at the start of their journey and a fun competition for those who are already in the habit."

Monzo is also offering a £10,000 prize for one customer who manages to complete the full challenge by the end of next year.