Originally Posted by FinanceDude
I can't think of any money market funds that have flat-lined in recent memory. If you want to keep things simple, put it into a US Treasury money market fund.
That was my thought, too. A treasury MM fund, like Vanguard's Admiral Treasury MM fund (VUSXX) might work out nicely. It may not be the best interest but I think it would be pretty safe, even though MM funds are not insured by the FDIC or anything else for right now.
If you really, REALLY want to be safe and earn good interest rates, I'd put it into FDIC insured savings accounts at places like Ing (who is advertising 3% in the junk snail mail I got today). I'd divide it between a number of such banks so that you have no more than $95K in any one bank, since the FDIC limit is $100K. The disadvantage of doing this is that it is inconvenient with your money in 7-8 different financial institutions.