What to do with your savings? Set up an automatic 50/month into an account at Ally.com which pays 1.7 percent right now. This is definitely not as great as a few go-go-go years ago when I was getting 3-5 percent on money market funds, but it will still help you start saving with interest on YOUR side!
I wish I had learned about these type of accounts earlier, as most bank accounts barely compensate you for the use of your money. Think of it in that manner, and you will be on the right track. The banks should pay you a premium for the privilege of using your money for their business.
That's right, the money sitting in your checking account (what's your balance?) is making your bank money and not you. What's the interest rate on that money? If you don't know, you may be annoyed to find out it is a paltry 0.25% or perhaps even less. Even the savings account interest rate may not be at all friendly to your savings.
Find a bank that respects your money enough to pay a decent rate. Otherwise, punch out, because there are much greener pastures out there. Minimum deposit rates may vary for the higher interest rates, but you can find a better rate no matter your situation!
Bankrate.com is a wealth of information on this subject, and more!