Probably a CD, or high interest savings account

When you buy a CD, you are giving the bank money, and in return the bank pays you a set interest rate usually given in APY or annual percentage yield. so if you bought a $1000 12 month CD at 3% APY, when you CD matures in 1 year you would have about $1030 dollars. The drawback is that you cannot take that money out before it matures or you'll incur a penalty. The good thing about it is that the interest rate is locked for the term of the CD, so no matter what happens in the real world (the feds dropping the interest rate to 0%) you will get that 3%.

On the other hand, a simple high-interest savings account works just like a regular savings account but is usually online-only, i.e. you have to transfer money electronically and not at a branch. The interest rate is subject to fluctuation but you always have immediate access to your money.

There's also stock dividends, you purchase stock from a company, and the company regularly pays it's stock holders some money for each stock they hold. this is also risky in that depending on the market conditions the company may not be able to pay a dividend. there are mutual funds that focus on dividends.
Source(s):
CD :http://en.wikipedia.org/wiki/Certificate_of_deposit
Dividend: http://en.wikipedia.org/wiki/Dividend

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I recommend a CD that gets at least a 6% yield. You can find them at different banks, but you do have to shop around.

And go to a safe bank, one that won't go under. Chase bank is good, and many smaller banks are actually also good.
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