Best Short Term Investment

I'm a college student and I earn money in the summer time that supports the books, expenses, etc. throughout the school year. I am wondering what would be the best way (if any) to invest anywhere from $3-5,000 for 6-12 months that is relatively safe from devaluing. I'm not looking to really make a ton of money here, just something to keep the money from sitting in a checking or savings account for that period of time when I don't need to spend it.

The following savings accounts are offering the best rates right now:

ING Direct = 2.8% interest
Emigrant Direct = 3.25%

Both have no minimums and are FDIC insured (up to 100,000)

The following savings accounts are offering the best rates right now:

ING Direct = 2.8% interest
Emigrant Direct = 3.25%

Both have no minimums and are FDIC insured (up to 100,000)
that's pretty good. are there any surrenders, or early withdrawl penalties, or is it just a regular savings account?

No penalties, no minimums - regular savings accounts

I agree, ING Direct or similar (VirtualBank, UFB Direct, Emigrant Direct) would all be good choices, and it can help keep your savings "separate" from your checking account and also help you avoid spending it!

I would agree with the previous posts. Online banks continue to outperform brick and mortar banks with rates. ING is currently paying 3.5% while Emigrant Direct is paying 4% - for short term savings and emergency funds, they are a good place to keep your money.

Credit Unions often offer the best rates on short term cds. Some as high as 6 or 7%. I would check with them first.

Check out current CD rates in your area at www.bankrate.com That is probably the best investment for such a short amount of time.

-EJP-
www.rmicsi.com

when i was your age i never thought of saving my money. now its kinda hard to save. well good for you in starting early