How To Get Better Interest Rates.  A money market account (or "MMA") is a FDIC-insured savings accounts (unlike money market funds, which are not insured.)  Most MMAs let you write 3 checks per month.  Banks require a minimum balance, usually between $500 and $2,000.  Many people settle for mediocre MMA rates offered by a local bank; a Kiplinger.com guide recommends some good choices that pay around 5% interest, or you can compare rates yourself using BankRate's MMA Rate Search.

     

How To Invest Wisely.  You basically have three choices:  (1) invest diversely while minimizing fees, (2) learn how to invest smart, or (3) use a local fee-only financial planner.  The first option is right for most people:  it gives you average returns, requires relatively little planning time, and protects you from a severe downside.  Investing smart is far more difficult than you might imagine:  even professional fund managers usually don't outperform the stock market, and many people with high optimism and little experience get burned trying to outperform it.  Fee-only means that the planner doesn't get a commission for selling you anything, and therefore is likely to be unbiased -- but he'll charge 1% to 2%, which probably means surrendering between 15% and 30% of your gains.  You can learn how to find a good financial planner using this five-page tutorial by Money Magazine.