While it is tempting in the current environment to stash the cash in your mattress, and it will gain almost as much interest there as in your checking account, it is not going to help you get to that retirement milestone.
With my last bank statement, I saw that I was getting a whopping 0.1% rate on my checking account and an astronomical 0.6% rate on my savings account.
I had planning on doing some banking on Monday, and thought to investigate Certificate of Deposit (CD) rates and open one for our Rte66/cruise/car/legal funds we have established. The National Average for Money Market funds is 0.12%, for Deposit Accounts is 0.37%, for CD's is 1.14% for 12 months, and 2.38% for 60 months. I believe that interest rates will rise over the next year or two, so certainly do not want to lock in a 60 month rate.
I have an ING - Orange savings account associated with my stock investment account, and they are giving a 1.4% rate, so I did my transfers on-line today. If you do not already have an account that you can secure a greater than 1% rate on, below are a couple of places you can increase your savings return rate:
Money Market, USAA, 1.06%, www.usaa.com
Deposit Account, Bank of Internet, 2.5%, www.bankofinternet.com
1-Year CD, NewDominion Bank, 2.26%, www.newdominiondirect.com