Doing nothing with your savings is not a neutral choice. In Europe, it can mean losing purchasing power over time. Revolut’s European Wealth Drain Index, based on 20,007 adults across 20 EU member states and official deposit and inflation data, shows households holding cash while its real value declines.

Cash Is Losing To Inflation

In 12 of the 20 markets studied, average one-year deposit rates are below inflation. Across the sample, deposits pay 2.76% on average, compared with inflation of 2.94%.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Revolut estimates households forgo €638 per €10,000 each year by keeping money in cash, compared with the MSCI Europe ETF’s 10-year annualized return of 9.06%. Across €6.3 trillion in liquid deposits covered by the study, that represents roughly €422 billion a year not flowing into investment.

Why Savers Stay Put

Two-thirds of respondents have never switched banks for a better rate. Among them, 26% prefer their existing bank, 18% see little difference and 15% do not know where to look.

Financial literacy is another barrier: 46% misjudge their inflation-adjusted returns, while 19% do not realize inflation affects cash. One in five Europeans has no savings.

Revolut Favors Lower Investment Barriers

Among non-investors, 29% cite perceived risk as the main barrier and 27% cite lack of knowledge. Revolut says active EU retail investors on its platform increased 56% year over year.

“Forced enrolment doesn’t tackle the root causes of inertia: perceived risk (29%) and a lack of knowledge (27%),” said Rolandas Juteika, Revolut’s head of wealth and trading. He said the median first-time EU investment on the platform is €18.

Europe’s Savings Divide

Central and eastern Europe has some of the widest gaps between inflation and deposit rates, led by Bulgaria at 2.3%, Slovakia at 1.7% and Lithuania at 1.3%. Meanwhile, 51% of respondents in both Bulgaria and Romania said they would consider starting to invest.

Germany has €1.9 trillion in deposits and France €588 billion, while fewer than 40% of respondents in Denmark and Sweden understand how inflation affects long-term wealth.

Brussels Wants Savings To Fund Investment

The findings come as the EU seeks to direct more private savings toward European investment. The European Commission estimates €10 trillion in household savings are held in bank accounts, while the Draghi report estimated Europe needs an additional €750 billion to €800 billion in annual investment by 2030.

The Savings and Investments Union, adopted in March 2025, aims to encourage investment through simpler savings accounts, pension reforms, securitization rules and changes affecting banks and insurers. The Commission estimates the measures could unlock as much as €470 billion in additional investment.

Von der Leyen has called for an agreement by the end of 2026, ideally involving all 27 member states, while leaving open the possibility of moving ahead with ready countries.