Cash savings
Bank deposits and money market funds
"Safe, accessible, but quietly losing value to inflation every year."
Avg. yearly return
1–4%
Volatility
Very low
Liquidity
Immediate (savings accounts)
Min. investment
From €1
Cash savings — bank deposits, savings accounts, and money market funds — are the safest form of storing money. Your principal is protected (up to deposit guarantee limits), and you earn modest interest. The critical risk is not losing money suddenly, but losing purchasing power slowly: if inflation runs at 4% and your savings earn 2%, you are becoming poorer by 2% per year in real terms.
10-year price history
+10% (2015–2024)Starting value = 100 (index)
Indexed to 100 in January 2015. Represents average European savings account interest rate. Note: after inflation, the real value of cash savings was negative in most years from 2015–2022.
Risks to understand
Inflation risk
high riskThe biggest risk of cash is invisible. If your savings earn 3% but inflation is 5%, your real purchasing power falls 2% per year. Over 10 years, €10,000 in real terms could become €8,200.
Bank failure risk
low riskEU bank deposits are guaranteed up to €100,000 per bank per person under the Deposit Guarantee Scheme. If your bank fails, you receive up to €100,000 back. For amounts above this, spread across multiple banks.
Interest rate risk
low riskFixed-term deposits lock in a rate. If rates rise, you miss out on better returns until the term ends. Instant-access accounts avoid this but typically offer lower rates.
Currency risk
medium riskCash held in a foreign currency is subject to exchange rate movements. €10,000 in a USD account can change in EUR value significantly over time.
How to invest in this asset
Cash savings are the simplest investment — you likely already have access to the options below.
Compare savings account rates
Rates vary significantly between banks. Online banks (N26, Revolut, Trade Republic) typically offer much better rates than traditional high-street banks. Use a comparison site to find the best current rate.
Consider a fixed-term deposit for higher rates
Locking money away for 6, 12, or 24 months typically earns a higher rate than instant-access accounts. Only do this with money you definitely will not need during that period.
Use a money market fund for large amounts
For amounts over €50,000, a money market fund (available through brokers) typically offers better rates than bank accounts while remaining extremely safe and liquid.
Never keep more than you need in cash
Keep 3–6 months of living expenses in an easily accessible savings account as an emergency fund. Any amount beyond this should be invested — cash loses real value over time.
Providers and platforms
Trade Republic
Online bank/broker · Min. €1 · BaFin (Germany)
Currently offers 3.75% on cash savings (rate varies). Also allows investing in ETFs from the same account.
Revolut
Digital bank · Min. €1 · Bank of Lithuania
Flexible savings vaults with competitive rates. Instant access. Popular with Europeans.
N26
Digital bank · Min. €1 · BaFin (Germany)
European digital bank with savings accounts. Rates competitive with traditional banks.
Raisin (now Raisin Bank)
Savings marketplace · Min. €1 · BaFin (Germany)
Platform aggregating savings accounts from 100+ banks across Europe. Find the best rates in one place.
Interactive Brokers
Online broker · Min. €0 · FCA, SEC
Money market funds available through broker account. Higher rates than most savings accounts for larger amounts.
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Find my best option →All information on this page is educational only. Historical data does not guarantee future results. Provider links are not affiliate links — we receive no commission. Always consult a licensed financial advisor before investing.