European households are losing purchasing power and potential investment returns by keeping savings in cash and low-yield deposits, according to Revolut’s European Wealth Drain Index and research from the European Central Bank. Revolut’s survey of 20,007 adults across 20 EU member states found average one-year deposit rates of 2.76%, below 2.94% inflation in the sample, with rates trailing inflation in 12 markets. Relative to the MSCI Europe ETF’s 10-year annualised return of 9.06%, Revolut estimates that households forgo €638 annually per €10,000 held in cash, or €422 billion in potential yearly growth capital across €6.3 trillion of deposits. Separately, the ECB says euro area households hold nearly €10 trillion in cash and low-yield deposits, about one-third of their financial assets, while around 80% own no market investments. Perceived risk, weak financial literacy, inertia and national pension and investment-product differences discourage participation. The findings support debate over the EU’s Savings and Investments Union, adopted as a strategy in March 2025 to direct more private capital toward European businesses, although the initiative cannot access household deposits and critics question increased Brussels influence over savings and supervision.