Banks are FDIC insured up to $250K per account. Secondly, if you will need this money soon, as in less than 5 years time, I would most definitely NOT put it in stocks. You stand the chance of losing money in the short term. If you use online banks like Ally or Capital One 360, you will still earn around .75% interest in their savings accounts. A heck of a lot better than most banks that give you .03% on your deposits. Good luck.