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Europe’s Cash Savings Lose Ground As Inflation Outpaces Deposit Rates

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%.

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.

Europe’s Deadly Summer Heat Exposed The Cost Of A Warming Continent

Europe experienced its deadliest summer for heat-related deaths on record in 2026, with an estimated 24,400 excess deaths linked to extreme temperatures across 30 countries. Researchers estimate that human-induced climate change was responsible for around 32,000 of the deaths attributed to heat in the study’s broader analysis, accounting for 65% of the total.

The findings highlight the growing public-health consequences of global warming, largely driven by fossil fuel use, as extreme heat becomes more frequent and severe.

A Summer Of Dangerous Heat

Between June and August, heatwaves pushed temperatures in Western Europe to an average of 2.9°C above the 1991–2020 norm, with some days reaching 12°C above average. Nearly a third of estimated heat-related deaths occurred during a particularly intense heatwave between 17 June and 1 July.

“These numbers are a stark reminder that our hotter, more extreme summers are having an increasingly severe impact on public health,” said Dr Clair Barnes, a researcher at Imperial College London and co-author of the study.

The estimated toll exceeded previous peaks of around 29,000 deaths in summer 2022 and 28,000 in 2003 across the region studied.

How Researchers Estimated The Toll

Researchers modelled the relationship between temperature and mortality across 854 urban areas in the EU, UK, Norway and Switzerland, covering around 40% of the population in the 30 countries studied.

The analysis incorporated temperature records, age, socioeconomic conditions, environmental factors and access to healthcare. By comparing actual temperatures with those expected without human-induced warming, the team estimated the additional deaths attributable to climate change.

Final official mortality figures for summer 2026 are not yet available in many countries, and heat-related deaths are often underreported because their effects can be difficult to identify directly.

Older People Face The Greatest Risk

People aged 85 and over accounted for roughly half of the estimated deaths. However, the impact extended across age groups, with around 800 excess deaths among adults aged 20–44 and approximately 6,000 among people under 65.

Southern Europe experienced the highest mortality burden, reflecting hotter temperatures and other vulnerabilities, including air pollution, limited green space and unequal access to healthcare and heat-alert systems.

Italy, France And Spain Record Highest Toll

Italy recorded an estimated 13,303 heat-related excess deaths, followed by France with 7,268 and Spain with 6,824. Germany recorded around 6,340, while the UK saw an estimated 4,354 deaths.

In the UK, the heat also placed significant pressure on healthcare services. Andrew Hartle, Professor of Practice of Anaesthesia at Imperial College Healthcare, said demand during the summer resembled that of a severe winter virus season.

Cities Urged To Strengthen Heat Protection

Researchers say cities can reduce the risks through climate shelters, external shading and building retrofits, alongside measures to help residents avoid exposure during the hottest hours. Checking on vulnerable people, staying hydrated and following heat alerts are also important.

The researchers stress that adaptation must go hand in hand with reducing fossil fuel use to limit further warming. The findings underline that extreme heat is already a major public-health threat across Europe, with thousands of lives at risk each summer.

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