Money market and CD rates are very low right now. No matter how hard you look or where you look, you will not find any rates that will make you very happy. For someone who relies on interest income, this is a very tough time right now. Retired people usually fall into this category as the only two income sources most retirees have are Social Security and interest from their savings.
There is really no safe place for anyone to put their money and get a reasonable rate of return. Older people need to have their savings in something safer than the stock market because they might need the money at any time and they cannot afford the risk that comes with the stock market. It is true that they might not have to worry about losing a job like many folks do, but their income has taken a big hit too.
CD and government bond interest rates are usually going to be higher than those of money market accounts. This is because the money you put in a money market account is not locked up like it is with a CD. Interest rates can depend somewhat on the time frame you agree to loan the money and with most money market accounts, you can make periodic withdrawals and you can take all of it out at any time. This means you get a lower interest rate than something like a CD where you agree to leave the money in for a predetermined length of time.
People use money market accounts in conjunction with stock portfolios as a place to park their money that is not invested in stocks. If you are one of the lucky ones that has money to invest, right now you will not be finding rates that give you much in return. No matter how long you search the Internet, you will not find rate that are anywhere near what they were 3 or 4 years ago.
There is something called social lending that will give you a higher rate of return but it does come with some risk. With social lending, you are lending money to another person rather than a banking institution. This is done through the Internet and you might be able to get a rate of return of 6% or higher. In exchange for this higher rate you will be exposed to more risk as the person you loan your money to could default on the loan. Even with the risk, if you absolutely need to find a place where you can get a higher interest rate, this type of social lending is worth looking into.
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