With the volatility shaking the market, investors once again are looking for a safe place to stash their cash.

The problem is, the prospects just aren t all that great. The yields on short-term options are skimpy, given banks reluctance to lend and distaste for risk across-the-board. Recent yields are even thin compared to just a year and a half ago when banks were turning to customers to shore up cash. In 2008, savings accounts were yielding as much as 4%, vs. a measly 1.4% now.

What s more, the federal-funds rate is at a record low -- so it s cheaper for banks to just borrow from the government instead, says Doug Roberts, chief investment strategist for Channel Capital Research. As long as the government makes it inexpensive to borrow, yields will be anemic, he says.

Given that landscape, what choices does an investor have? Certificates of deposit (CDs), which are running about even with Treasurys, look like the best option, says Jack Ablin, chief investment officer for Harris Private Bank. One strategy is to look for a bank that is running a special to lure customers, says Ablin. According to Bankrate.com, the best rate on a one-year CD is currently about 1.55%. If you have some wiggle room in terms of time, Roberts suggests looking out a little further, perhaps two to five years, for better yields. Three-year CDs have an average yield of 1.7% and 2.4%, according to Bankrate.com.

Also, while nothing is guaranteed, banks responding to Federal Reserve surveys have indicated that credit requirements are loosening incrementally. That could be an early indication that banks will be lending soon, Ablin says. If requirements loosen, short-term rates could get a slight boost since banks will need more money to lend out.