[guelo]

I don't know much about the banking industry but savings accounts and CDs have always felt scammy to me. They're marketed to the rubes that have no idea what they're doing so they can get away with not being competitive with other financial instruments.

[jklein11]

The reason why savings accounts and CDs have such a low interest rate is because they are far less risky than other financial instruments.

If you compare them to other assets with a similar risk profile and payment structure, such as short dated treasury notes and annuities, you will find that the rates are at least competitive.

Disclaimer: My response has a US bias.

[mludlum]

Savings accounts and CD's are FDIC insured vehicles - they are not meant to grow in value but be safe and easy to access in the event you need funds.