26-02-2026
6 min read
Atom bank warns of the gamification gap that could be holding back savers
Team Atom
- Banks who offer a round-up feature within their app are paying as little as 0.75% AER on their easy access savings products.
- Given current best buy rates, savers could gamify with a savings challenge before growing that pot with a savings provider who may offer better rates.
As we look to work on good habits we kicked off in January, the focus of many banks and customers has been on savings challenges.
While millions of Brits are successfully gamifying their finances through trends such as the 1p Savings Challenge and automated ‘round-ups’ within current account apps, Atom bank is warning of a “gamification gap” that could be costing savers in the long-run.
The ‘round-up reality’
Recent data shows a significant interest gap in the easy access savings products offered by current account providers and savings providers who sit nearer the top of best buy tables.
Banks such as Monzo, Starling, Nationwide, Santander and Lloyds who offer a round-up feature within their app are paying as little as 0.75% AER* on their standard easy access savings products, at a time when easy access savings rates are available above 4.00% AER**.
| Bank | Standard Easy Access Rate (AER) | The “Round-up” Reality |
|---|---|---|
| Lloyds Bank | 0.75% - 1.00% | The lowest in this group. The “Easy Saver” pays just 0.75% on balances up to £24,999. |
| Santander | 2.00% | The “Easy Access Saver” pays 2.00%. |
| Nationwide | 1.10% | The “Instant Access Saver” pays 1.10% for balances under £10,000. |
| Starling Bank | 2.50% | Recently lowered from 3.00% to 2.50% on January 5, 2026. |
| Monzo | 2.75% - 5.00% | Standard users earn 2.75%. Offers 3.25% with Monzo Perks/Max. 5.00% is exclusive to 1p Challenge pots for premium tiers. |
*Rates correct as of 16 February 2026
Getting the most out of the Monzo 1p challenge
Monzo offers a higher 5.00% AER interest rate exclusively to customers on its paid plans: Extra (£3/mo), Perks (£7/mo), or Max (£17/mo).
Because the 1p Challenge balance starts at just 1p and only reaches its highest levels in the final months, the total interest earned is relatively low. Based on a standard 365-day saving schedule, the estimated interest on a completed challenge pot (saving £667.95 by day 365) is roughly £11*** for Monzo customers on a paid plan.
| Plan | Monthly Fee | Annual Cost | Est. Interest Earned* | Net Position |
|---|---|---|---|---|
| Extra | £3 | £36 | £11 | -£25 |
| Perks | £7 | £84 | £11 | -£73 |
| Max | £17 | £204 | £11 | -£193 |
*Estimate based on a standard 365-day 1p challenge profile where the bulk of the balance is only reached in the final months.
While the rate of return on the challenge pot is relatively low, once a saver has successfully completed the challenge each year, the next step should be to ensure those funds are working as hard as possible. At the end of each challenge year, customers should take the time to consider their options, looking beyond their current account provider to other savings providers.
Exploring other products, including Cash ISAs and fixed rate savers, can also give their money the best chance of growing and help to maximize the returns on their newly-formed saving habit.
Chris Storey, Chief Commercial Officer said: “We love the Monzo challenge. Gamification can be the perfect way to build a habit and we think making this as easy as possible within an app is to be encouraged. Round-ups and 1p challenges can turn small change into meaningful pots of £600 or more over a year, making them a great way to get more people saving.
“The round-up reality however is that many of these dedicated pots are paying very little - we call this the gamification gap. Our take is that once the challenge is complete, savers should consider ways to maximise their returns. Moving those wins from a current account provider to a savings provider paying a top rate is one way to ensure a newly-earned habit actually starts to pay off.”
ENDS
*Rate on the Lloyds “Easy Saver” which pays 0.75% AER on balances up to £24,999. Illustrates the lowest rate on standard easy access, customers may be linking other products to their round-up challenge. **Moneyfacts data, correct as of 16 February 2026 ***Estimate based on a standard 365-day 1p challenge profile (saving £667.95 by day 365) where the bulk of the balance is only reached in the final months on Monzo’s 5.00% AER rate for Extra, Perks or max customers.
For Atom
Robbie Steel, robbie.steel@atombank.co.uk 07538 775 701
About Atom bank
Atom bank is the UK’s highest rated bank on Trustpilot, and is on a mission to make the experience of borrowing and saving faster, simpler and better value than anyone else. The bank launched operations in April 2016 as the UK’s first app-based bank, and offers award-winning mortgages and savings through its app, alongside secured business lending for small and medium-sized enterprises.
Based in the North East of England with a team of nearly 600 people, Atom is here to change banking for the good, for the better, and for everyone. This means focusing on customers’ needs, delivering better value than the incumbents, providing an exceptional app-based experience and offering award-winning customer support via phone, chat, email and social channels. The bank has some of the best customer service credentials in the UK, having achieved 5-star ratings on both the iOS and Android App Stores, whilst consistently delivering Net Promoter Scores (NPS) in the high 80s.
Based in Newcastle, Atom is an engaged and active member of the North East Community. In 2022 Atom signed a five-year Memorandum of Understanding with Durham University to progress key research and diversity initiatives. The region has one of the highest levels of youth unemployment in the UK and Atom is passionate about addressing the critical digital skills gap and helping develop young people and other groups that are under-represented within the industry. In 2024, Atom purchased 25 acres of newly planted broadleaf woodland in Northumberland to sequester 7000 tonnes of carbon, which will account for all its operational emissions since founding. This forms part of the bank’s pledge to be climate positive by 2035, becoming the first UK bank to make this commitment.
As of November 2021, all employees enjoy a four-day working week, after Atom became the largest company - and only bank - in Britain to introduce the policy for all employees, with no reduction in salary.
The Atom executive team are highly experienced, having built and run some of the most well-respected banks in the UK. CEO Mark Mullen has 30 years’ experience in the sector and was previously CEO at the multi- award-winning telephone and internet bank first direct. The team is supported by a strong non-exec board, chaired by Lee Rochford.