What to do with $1,000 now

Low interest rates and the recent stock market surge make this a challenging time to find the best places for your extra cash.

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Top off your emergency fund

Given today's shaky job picture, you need fully six months' worth of expenses set aside in a liquid account that you can raid if calamity strikes. Fall short? Adding to that stash is a no-brainer. Because yields on many of the typical cash options look rotten -- six-month CDs are kicking off an average 0.62%, and money-market funds are hovering around 0.05% - your best bet is a high-yield online savings account. One example: Ally Bank (ally.com; 1.75% yield; no minimum). Find other solutions at bankrate.com.

By Joe Light, Ismat Sarah Mangla and Penelope Wang

NEXT: Spend five hours with a financial planner

Last updated October 12 2009: 5:19 PM ET

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