Europeans Lose Purchasing Power on Idle Bank Savings

September 15, 2026 - 01:30

Households across Europe are watching the value of their bank deposits erode year after year, with new research showing that keeping money in low interest accounts carries a real cost. According to a study from Revolut, savers lose an average of 294 euros in purchasing power for every 10,000 euros they leave sitting in the bank. The finding highlights a gap between what people earn on their savings and the rate at which prices rise.

The scale of the problem is significant. The study estimates that roughly 6.3 trillion euros are held in low yield deposits across 20 European Union countries. That money earns little or no interest while inflation steadily reduces what it can buy. For many households, the loss is invisible because the account balance itself does not change, but the goods and services that balance can purchase shrink over time.

The issue has drawn attention in Brussels, where officials are working to channel more household money into capital markets. Policymakers argue that deeper participation in investment products could deliver better returns for savers and provide businesses with more funding for growth. However, shifting savings habits is difficult, as many Europeans remain cautious about market risk after years of economic uncertainty.

The study suggests that inertia, not active choice, keeps much of this money parked in accounts that fail to keep pace with inflation. For the average saver, the annual shortfall may seem small, but over a decade it adds up to a substantial reduction in wealth.