Investing basics: Money Market Account
A step up from a traditional savings account will be a money market account. Both are FDIC insured up to a certain amount, and a money market account is also very easy to open. You can do that at pretty much any bank.
Just like savings, your money market account will have limitations on how many times you can withdraw your money from it in a period of 6 or 12 months, and there are penalties associated with early withdrawals. Because money market accounts have slightly higher requirements on minimum balances than savings, you can earn higher interest on your saved money. This option still gives you much control and high liquidity, in case you had to access your funds quickly.
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