Online savings account. Or you could ladder them in CD's. Put about 1/6th of it in a 6 month cd one month. Put another 1/6th into it the next month and so on. This way, you have the ability to lock in rates when they're higher unlike an online savings account.
I personally have mine in EmigrantDirect. When I started two years ago, the rate was around 5%, but now it's dropped to 1.85% and still dropping just like all other online savings accounts. It's not supposed to be an aggresive (risky) money making vehicle, it's an emergency fund and any risk free interest you can earn on it is money in the bank!
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