The simple savings challenge can make it simple and affordable for people to save hundreds
As 2026 unfolds, many people could potentially save more than £660 by December 31st with the 1p savings challenge. This popular method involves saving money daily, with an increment of 1p each time. So, on January 1st, savers stash away 1p. Then on the 2nd, they save 2p.
On the 3rd, they save 3p, accumulating a total of 6p in savings. This pattern continues, increasing by 1p each day until December 31st when they save £3.65. By the year’s end, they will have amassed £667.95 in savings.
An alternative approach to this challenge is to reverse the order and deduct 1p from the amount saved each day. Starting on January 1st, set aside £3.65 and the next day save £3.64. This method saves the same amount as the original technique by December 31st.
If you miss a day or start late, simply calculate the total of what you missed and add that to your savings in one lump sum. For instance, if you only manage to commence the challenge on January 20, you could contribute £2.10 on your first day, then resume the challenge as usual on 21 January and save 21p.
To monitor the savings challenge throughout the year, several online and printable trackers are available, including MoneySavingExperts’ design where you can mark off each day. With physical trackers like this, you can also use a different method to tackle the challenge.
Instead of ticking off each amount in a specific sequence, you can select random amounts or simply tally up the coins in your pocket at that given moment and tick off that amount.
For those embarking on the 1p savings challenge, traditional methods such as piggy banks or money jars can be used to stash away coins throughout the year. However, if you’re more digitally inclined and prefer online banking, it’s worth checking whether your bank permits transfers of such small amounts.
Banks like HSBC and Monzo do allow customers to transfer as little as 1p daily and even offer the convenience of automating these incrementing amounts.
If your bank doesn’t support this, you can still participate in the challenge by making weekly or monthly transfers using the equivalent amounts as if you were setting aside 1p each day.
Another option is to set up a monthly standing order for £55.67. This will accumulate roughly the same amount over 12 instalments as the daily savings challenge.
