Where to put capital project savings?

[Josh Lyons]

When you have a stash of money for capital projects such as repairing a roof or something that will happen every five or 15 years or so, where is the best place to save that money so it is doing a little bit of work for you? Of course you want to keep it liquid so you have it when it is time to replace something. But at the same time you want to get as much interest as you can. Is it best to have it in the highest interest savings account that you can find which of course would only be one or 2%?