Think You're Being Sensible by Not Investing? Here's What €10,000 in Savings Could Be Costing You

Keeping €10,000 in cash could be costing European savers hundreds of euros a year, with new analysis suggesting they may have forgone around €638 in potential returns over 12 months for every €10,000 left in low-yield deposits.

While leaving money in the bank can feel like the safer option, the figures highlight how much savers might have missed out on compared with historical equity-market performance.

Revolut's European Wealth Drain Index estimates the €638 figure using the 9.06% annualised return of an MSCI Europe ETF over the previous decade. It is an opportunity-cost calculation, not a guaranteed investment return, and stocks can fall as well as rise. The analysis puts Europe's low-yield deposit pool at €6.3 trillion across 20 EU countries.

What €10,000 Could Be Costing Savers

Revolut gives two separate measures of the cost of keeping money in deposits. Average one-year deposit rates across the 20 markets stood at 2.76%, compared with inflation of 2.94%. Revolut calculates that inflation represents €294 of purchasing-power erosion on €10,000; that figure is not net of the deposit interest earned.

Separately, Revolut estimates savers could have forgone €638 on the same €10,000 over a year under its historical MSCI Europe ETF comparison.

Revolut also scales that comparison across its €6.3 trillion deposit pool, producing an estimated €422 billion in forgone returns. That figure should not be interpreted as €422 billion being removed from household bank accounts. It is a modelled opportunity cost based on past market performance.

Europe's Savings Gap Is Growing

The European Central Bank said on Tuesday that around 80% of euro-area households do not own stocks or other market-based financial instruments.

Nearly €10 trillion is held in cash and low-yield bank deposits, accounting for about a third of household financial assets.

The divide is also visible among wealthier households.

More than 65% of the wealthiest 20% of US households hold listed shares, bonds or mutual funds, compared with less than 45% in the euro area, according to the ECB.

Revolut's survey of 20,007 adults across 20 EU countries in July found that two-thirds had never switched banks to secure a better return.

About 46% misjudged the real return on their savings, while nearly one in five did not know inflation reduces the purchasing power of cash. Among non-investors, Revolut found that risk and a lack of investment knowledge were major barriers to entering financial markets.

Brussels Wants More Savings Into Markets

The European Commission is pursuing its Savings and Investments Union to encourage more household money into capital markets and improve access to investment opportunities.

The Commission has put the broader pool of European household savings held in bank deposits at around €10 trillion, while the ECB separately puts euro-area cash and low-yield deposits at a similar scale. Those figures cover a wider population and should not be merged with Revolut's €6.3 trillion, 20-country sample.

The policy push has also fuelled claims that Brussels wants to seize private savings or force households into investments. Such claims have been rejected by fact-checkers.

The EU does not have direct control over people's bank balances, and the Savings and Investments Union does not require households to invest. Deposits provide liquidity and avoid direct exposure to stock-market losses, while investments offer the possibility of higher returns with corresponding risk.

The UK Is Outside Revolut's Calculation

British savers should not treat the €294 or €638 figures as estimates for their own accounts because the UK was not included in Revolut's 20-country study.

The Bank of England's Bank Rate currently stands at 3.75%, while its rates page displays inflation at 2.9%. The return available to an individual UK saver will depend on the account, interest rate, tax treatment, inflation and investment choices.

For the European saver in Revolut's analysis, the calculation is straightforward: €10,000 kept in deposits may provide safety and liquidity, but under the study's historical equity comparison, it also represents €638 in potential returns forgone over a year.