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

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.