Why are CDs and money market accounts so useless?

Why are CDs and money markets offered and even considered by people as "investments" when the return is just enough to buy you a pack of peanuts if you let them borrow loads of your money. Its complete BS. 2-5 percent APY ?? useless...

Its terrible, and then they go ahead and lend our money to others at 19-25% on credit cards, etc...

What i can tell you is, a 5% CD is not bad to keep your emergency cash stash... lets say your 3-6 month living expenses.. wich is on average about 10-20k... plus it compounds...(but i still agree its BS) ..... for your REAL investments... try investing in Stocks, and Real Estate, those are my 2 favorite. Real Estate being the better one, but in my situation, i dont have the capital. So i go with stocks.

Then, the better idea is to create companies... and earn profits... that is the greatest investment in my opinion.

I'm getting 5% on several CDs. You need to shop around. It's a great place to park some cash risk free.

4-5% is not usless for a small amount of money you need for near term expenses and an "emergency fund" of 6 -12 months of income. It would be unwise to put this money in the market..... short term funds should not be subject to risk.

bush, the economy is in the toilet, 1 out of 5 American mortgages are in foreclosure, the interest rates have reached record breaking lows, which would normally spur the economy, but bushs creative book keeping has now come home to roost and it will take the American economy with it! bush can deny it all he wants, the country is in the first stages of a recession. Of course he's lied about everything else, why start being honest now?

CDs and money market accounts are considered low risk or even no risk investments. You're earn a steady return back so you can buy "a pack of peanuts." Some people prefer these low risk investments over high risks such as stocks.

Anyways, 5% isn't "useless" if you have a big bankroll.

Risk and return go together. The higher the potential for return, the greater the risk. Prudent and balanced investing requires that you keep some money in safe and liquid cash savings.