Europeans save a lot, but almost 10 trillion euros, about a third of the financial assets of Eurozone households, remain concentrated in cash and bank deposits with low yields. Furthermore, approx eight out of ten families do not own shares or other financial instruments traded on the markets.
This is the photograph contained in the European Central Bank’s new analysis of families’ savings choices. The data does not mean that everyone should invest in the stock market, nor that leaving money in the account is always wrong. Liquidity is needed to pay daily expenses and deal with unexpected events.
The problem arises when sums remain in the account that will not be used for years. In that case the balance apparently does not change, but it can decrease what that money actually allows you to purchase.
Europeans keep a third of their savings in deposits
On average, Eurozone families keep around a third of their financial assets in bank deposits. In the United States the share stops at 11%.
Distance does not depend only on available wealth. Among the wealthiest 20% of American families, more than 65% own publicly traded stocks, bonds or mutual funds. In the Eurozone the percentage remains below 45%.
According to the ECB, therefore, it is not just the lack of money that keeps Europeans away from the markets. Also important:
- the perception of risk
- lack of knowledge of financial products
- limited confidence in the markets
- the availability of simple tools
- the functioning of pension systems
- tax differences between countries.
The situation appears even clearer when observing the different profiles of European families.
| Profile identified by the ECB | Share of families | Main feature |
|---|---|---|
| Real estate owners | Over 60% | Much of the wealth is concentrated in homes |
| Deposit savers | About 25% | They mostly keep their money in the bank |
| Owners of pension products | About 10% | They invest indirectly through social security and insurance |
| Investors in the markets | About 4% | They hold a significant stake in stocks, bonds, funds or ETFs |
Only the 4% of families, therefore, invest a significant part of their wealth directly in the markets.
How much money left in the account yields today
The distance between the return on deposits and the increase in prices allows us to understand the real cost of unused liquidity.
According to the most recent ECB statistics on bank rates, in July 2026 immediately available household deposits yielded on average 0.28% gross in the Eurozone. The new deposits with an agreed term of up to one year offered, on average, the 2.10% gross.
In the same period, Eurozone inflation recorded by Eurostat rose to 3.3% in August, up from 2.9% in July.
This does not produce a visible subtraction from the account. The money continues to be there and can even increase slightly thanks to interest. However, if prices rise more than the net return, its net return decreases purchasing power.
Is leaving money in the account always wrong?
No. The current account is used to receive income, make payments and deal with unexpected events. The problem arises when even sums that are not needed in the short term remain for years. Accounts and investments are therefore not absolute alternatives: each part of the savings must have a function consistent with the times and needs of the family.
| Need | Indicative horizon | Possible destination |
|---|---|---|
| Daily expenses | Immediate | Current account |
| Contingency fund | Brief | Liquid and prudent instrument |
| Expenditure already scheduled | Within a year or two | Short-term deposit or instrument consistent with maturity |
| Future project | Medium term | Diversified risk-compatible solutions |
| Capital not needed for many years | Long term | Diversified portfolio according to your profile |
Deposit protection must also be considered. The Interbank Deposit Protection Fund explained by the Bank of Italy covers, in the foreseen cases, up to 100 thousand euros per depositor and per bank.
From BOTs to ETFs: different instruments for different needs
There is no absolute best tool. There is the one most consistent with the time available, the need to recover the money and the ability to tolerate fluctuations.
| Instrument | Yield | Main risk | Availability |
|---|---|---|---|
| Current account | Generally contained | Erosion of inflation | Immediate |
| Deposit account | Established by the bank | Constraint and insufficient return compared to prices | Variable |
| BOT | Known if held to maturity | Early sale and reinvestment | Short term |
| BTP | Coupons and redemption at maturity | Price fluctuation and issuer risk | Medium-long term |
| Bond ETF | Variable | Rates and fluctuations in underlying securities | Daily |
| Equity ETF | Not guaranteed | Possible losses, even significant ones | Especially suitable for the long term |
Stocks and ETFs do not offer earnings guarantees. BOTs held until maturity make the outcome more predictable, but still present risks and costs. Deposits may also have different conditions, restrictions and charges.
Italian wealth has already paid the price for inflation
The topic directly concerns Italy. According to the reconstruction of household wealth by the Bank of Italy and Istat, at the end of 2024 the net wealth of Italian families was worth 11,732 billion euros.
The figure had increased by 2.8% compared to the previous year at current prices. Once inflation was taken into account, however, wealth was still more than 5% lower than in 2021.
It demonstrates the difference between nominal value and real value: seeing a higher figure does not necessarily mean you have become richer.
The question to ask yourself before investing
The new ECB analysis does not suggest that every saver should move money from accounts to the stock market. Instead, it highlights a broader problem: millions of families do not participate in the markets even when they have resources that could be used for the long term.
Before choosing a product, there are four useful questions:
- How much money might you need at any given time?
- When will the remaining sum be needed?
- What temporary loss would you really be willing to bear?
- How much do costs, taxes and inflation affect the final result?
The mistake is not maintaining liquidity. It means leaving all your assets in a poorly remunerated account for years without having calculated the cost of the choice. Investing without knowing the risks can be dangerous; not deciding, however, is already a financial decision.
