Top Eight Places to Stash Cash
Money Market Accounts

Think of it as a savings account on steroids. You can open an MMA at a variety of banks and credit unions. The rates vary but are usually higher than for a traditional savings account.

Who's It For?

Money market accounts represent the next step up from the traditional savings account. Accounts sometimes require a little more cash to open than a savings account and may have a (higher) minimum balance, but many also offer a higher rate of return. The likely account holder will have a little more money accumulated and probably be a little more financially savvy.

Money market accounts are "usually better for people who are looking for some return, but want liquidity," says Keith Leggett, senior economist for the American Bankers Association. But the account holder needs to be the type who can manage and balance a check book, he says.

Once you've accumulated those three to six-months' worth of expenses in a rainy day fund, you'll have enough to move it to a money market account. Watch out for required minimum balances -- can you access enough funds in an emergency without taking it below the minimum?

Because check-writing is usually limited, this is a good option for paying those one-time expenses -- such as writing a check for a down payment on a car or home -- rather than a couple of trips to the grocery store.

It's also a good parking spot for money you've taken out of investments or cash you're preparing to invest.

Pros

Earn More: MMAs usually carry higher interest rates than traditional savings accounts. But there is a wide range, so if you want a high rate, be prepared to shop for it.

Liquid: You can often get the money by just writing a check.

Availability: MMAs can be opened at many institutions -- in almost as many locations as traditional savings accounts.

Ease of Use: The owner can often automate deposits. It makes saving that much easier.