This is always a good question.  If you’re out of debt and you have built up a “liquid” emergency fund, the best place to put your money is someplace where you can have that money make money for you!

One of the safer places in today’s economy is in CDs.  These investment vehicles allow you to earn higher interest than you can through a traditional savings account, with a catch—you cannot take the money out for a certain length of time

So, what you want to do is to do some research and find the highest CD rates through somewhere online.  That will allow you to make a good investment.

Another trick that I’ve read is to take the total amount that you want to invest in divide it over a period of time:

If you have $50,000 to invest, you could put $10,000 in 5 year CD, $10,000 in a 4 year CD and so on.  When the first term comes up in a year, you put that money back in for 5 years.  This will allow you to have access to your money every year in case you have a use for it or need it.

The important thing is to shop around, and not to reflexively go with your current bank.  Yes, they may give you a break, but they may also not be giving you the best interest rate that you can find!