Do these TikTok trends really work?

Social media is awash with savings challenges at this time of year. From various numerically-themed savings missions – the 1p and 365-day challenge – to the intriguing ‘last digit hack’, there are many to choose from.

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Aileen Robertson, head of savings at Atom bank, thinks they are a great idea. “For people looking to get their finances in check but struggle to save regularly, a savings challenge can be a great place to start,” she said.

“Our recent research found that 16.2 million UK adults dip into their savings every month, so taking on a savings challenge can be a great way to establish a routine and kickstart a more positive, lasting savings habit.”

These quirky hacks may inspire you to start the seeds of your savings pot, but can they last the test of time? Which are the most effective at helping you save money and how much could you potentially squirrel away? We take a look at some of the most popular to help you find the best savings habit for you.

Before you start: Find the right savings account

It might sound obvious, but it’s a good idea to find a dedicated savings account to put your money into before you begin your challenge.

Keeping your ‘savings’ in your current account will raise the temptation to spend the additional money.

The following challenges are ideally suited to the more flexible easy access savings accounts. Look for accounts described as either ‘easy access’ or ‘instant savers’ and check the details to ensure they allow you make deposits at any time.

Whilst interest rates on savings accounts have fallen in the last year alongside the Bank of England base rate, they are still strong.

At the end of last year there were several accounts paying over 4% interest. Make sure you look for the account with the right terms for you and the best rate possible to ensure you are making your money work as hard as possible.

1. The 1p or 52-week savings challenge

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The 1p version involves putting 1p into your savings account on day one, then 2p on day two, then 3p on the third day and so on. The idea is you increase the amount by 1p every day until you complete the challenge on day 365.

According to Nick Drewe, trend expert and founder of Wethrift, if you commit fully to the challenge and see it through to the end, you will have £667.95 simply by saving small everyday amounts.

The 52-week challenge runs on a similar premise, but you put money away on a weekly basis. If you do this using £1 to begin with, then £2 on the second week, and so on, Drewe said you could £1,378 by the end of the year.

This is a super way to really focus on saving and it doesn’t involve huge sums of money. If you do have a larger amount of cash to put away you could increase the sums – so it’s also flexible.

The practicalities of transferring the cash to your savings can be a bit fiddly – you’ll need to remember each day to make the transfer to your savings account. Setting up a direct debit can be helpful, as can using mobile banking.

For those who see the challenge through to the end, December could get expensive – with sums of around £50 being put away throughout the most expensive month of the year for those doing the weekly challenge.

In that case you might want to try another challenge…

2. The 365-day challenge

Aileen Robertson, head of savings at Atom bank, had an alternative for anyone who wants to spread their savings out more evenly through the months.

“For someone looking to build confidence when it comes to saving,” she said, “I’d recommend the 365-day challenge which could earn you £1,456 in a year.

“You put aside £1 on Sunday, £2 on Monday, £3 on Tuesday and so on, all the way up to saving £7 on Saturday. This gives you a weekly total of £28 saved.”

When you get to the end of each week, you start again. By the end of each month, if you are diligent, you will have put away around £120.

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Robertson added: “Dealing with small amounts each day means it’s not a huge sum you need to worry about setting aside, helping you to build positive savings habits.”

3. The last digit hack

This one is a quite novel – at the end of each day you check your bank balance and add the last digit to your savings account.

Nick Drewe explained if your bank balance is £1,756, add £6 or 6p to your savings account depending on your own personal budget. “By repeating this process on a daily basis, the money in your savings will soon begin to add up,” he said.

This is a lovely flexible challenge as it can be done with pence rather than pounds if you don’t have much to put away. But, as with other challenges, you’ll need to remember to do it each day and put aside a bit of time to make the transfer.

4. Round up your spending

When you spend any money, round up the purchase to the nearest full pound and add the difference to your savings.

For example, if you buy a coffee for £2.75 – round it up to £3 and put the 25p difference into savings.

Doing this little and often will really add up over time. What’s more, many banks have apps you can use which do this automatically for you, so you can save money without thinking.

5. No spend January

As the name suggests, ‘no spend’ January involves making no purchases other than the essentials – food, bills, travel to work and so on.

Whatever money you have left – over and above normal – can be put into savings. However, with January being a tough month financially, this could also be a method for rescuing your bank balance.

Aileen Robertson said it can help those who have spent a bit too much over the festive period to get back on track by getting a grip on their outgoings and cutting down on spending on unnecessary items.

She also suggested another challenge called the ‘30-day rule’. “You wait 30 days before purchasing anything non-essential and after that if you still want it then you can consider buying it,” Robertson explained. “This helps you to differentiate between wants and needs and avoids impulse spending.”