Savers can make some money by carefully stashing cash

— -- A year after the collapse of Lehman Bros., Americans are spending less and saving more, which most would agree is a healthy response to the financial crisis.

But while saving more might help you sleep at night, it sure won't make you rich. Interest rates on low-risk investments, such as certificates of deposit and money market funds, are abysmally low. Nobody should expect to make a bundle from an emergency savings account, but these days, interest on a $1,000 investment in a one-year CD will barely pay for a movie ticket. Popcorn not included.

The good news? This situation probably won't last. As the economy recovers, interest rates are expected to rise. Here's a look at how to get the most out of some popular low-risk investments in the meantime:

•Certificates of deposit. The average rate for a one-year CD was 0.98% last week, according to Bankrate.com. You can earn a higher rate by investing in a five-year CD, which was paying an average rate of 2.23% last week. But locking up your money for that long is a bad idea, says Greg McBride, senior financial analyst for Bankrate.com. Investing in CDs with shorter maturities, he says, "will give you the flexibility to reinvest at regular intervals and catch the eventual uptick," in interest rates.

Many high-yield bank accounts are paying slightly higher rates than CDs. But income-seeking retirees are probably better off with CDs because they offer predictability, McBride says.

"Even if you lock in a one-year CD at a rate slightly lower than that for a savings account, you know what you're going to get for the term of the CD," he says. With a high-yield savings account, he notes, "The yield can change at any time."

•High-yield savings accounts. A few banks are paying 1.75% or more on their savings accounts. Some banks and credit unions offer rewards checking accounts with rates of 4% or more. However, to earn these rates, you're usually required to set up direct deposit, receive your bank statements online, and use your debit card a certain number of times per month.

You can search for banks and credit unions offering rewards accounts at www.checkingfinder.com. The website bankdeals.blogspot.com also offers a list of rewards accounts.

The main advantage to high-yield bank and savings accounts is liquidity. You can withdraw your money at any time without penalty. That makes them an ideal home for your emergency savings account.

Some folks are uncomfortable investing money they can't afford to lose in an unfamiliar bank, even if it offers higher rates than the one down the street. But as long as your bank is covered by the Federal Deposit Insurance Corp., your deposits are insured for up to $250,000. Married couples with joint accounts can safely save even more: up to $500,000. Deposits in credit unions that are covered by the National Credit Union Administration are also insured for up to $250,000.

•Money market mutual funds. A money market fund is a convenient place to temporarily park money you're planning to invest in stocks or mutual funds, McBride says. A money fund allows you to move money quickly if a stock you've been coveting reaches your target price. But if you're looking for a place to stash your emergency savings, a high-yield bank or credit union account is a better choice.

Even the stingiest bank pays a higher rate than the average money fund. Last week, the seven-day average yield on money market mutual funds was 0.06%, according to the Money Fund Report, a service of iMoneyNet.

In addition, money funds aren't federally insured. Last year, the Reserve fund, a large money market fund, let its share price fall below $1— known as "breaking the buck." To prevent a mass exodus from money funds, Treasury implemented a limited insurance program. Since then, no other fund has broken the buck, but "if another financial crisis occurs, who is to say you're going to maintain a dollar net asset value?" McBride says.

While getting a good return on your savings is a worthwhile endeavor, don't lose track of your ultimate goal, which is to create a cushion against disaster. Michael Haubrich, a financial planner in Racine, Wis., says he encourages clients to shop around if it motivates them to save. But if they're more likely to save through a payroll deduction plan offered by their employer, that's fine, too, he says, even if it's not the best deal around.

When it comes to saving, Haubrich says, "What's important is that they do it."

Sandra Block covers personal finance for USA TODAY. Her Your Money column appears Tuesdays. Click here for an index of Your Money columns. E-mail her at: sblock@usatoday.com. Follow on Twitter: www.twitter.com/sandyblock