Invest your savings in something with decent interest rates. After you accumulate a sizable amount of money — say $1,000 — transfer your savings balance to a certificate of deposit (CD). CDs at an FDIC insured institution offer a higher interest rate than savings accounts. CDs have another advantage: they charge a penalty on early withdrawal. Knowing you have to pay a penalty, you will be less tempted to withdraw your current savings early and use it for other purposes. After accumulating larger amounts, look for other investments. Example: an investment in a mutual fund will pay a higher interest rate.