The 3,000 minimun was not much of a problem for my initial investment in mutual funds. I did some research on the internet and decided that Vanguard was the company for me. I have seen a nice return with Vanguard. recommend highly!

I invest in the Municipal Money Market Fund which has been among the highest rankings for many years. The current rates actually beat many of the taxable savings account rates. Even the Vanguard Prime Money Market account rate barely beats the Municipal Money Market account rate and you have the added tax exemption bonus. I used to invest most of the money in the US Treasury Vanguard Fund, but rates there are even lower than most online banks. You have checkwriting privileges and can request electronic transfers to your external bank accounts.

I have used Vanguard Prime and now Vanguard New York Municipal Money Market Fund and have been incredibly thrilled by the consistently high rates and ease of use.

Setting up online transfers to new institutions can be done automatically with some verification. Actual transfers take about 2 days, but that's pretty standard.

The only drawback is that the municipal funds don't yet have AMT-free options but the yields are high enough compared to AMT free accounts that it's worth it.