Go with an ING orange savings account. They are paying more than what most mutual funds are paying now. Actually, most mutual funds are in the red right now. My brother is a mutual fund broker, and he has alot of his money that he pulled out of the market in there, with the market being how it is. Its not a great return, only 2.75, but its better than any of your local banks, plus, its FDIC insured. I also have a couple grand in there.

http://home.ingdirect.com