What is the best way to invest short term without losing principal?

My wife and I were planning to buy a house this year, but the plan fell through, so right now we are sitting on the money that we saved towards down payment and renovations (prior to now money was in the Money markets, Savings & CDs). We decided to stop looking for a house for about a year, and resume next February, though if a nice deal shows up we want money easily available.

So in our situation what is the best way to make sure we don’t lose any principal, but to see that our money doesn’t sit idle.

CDs are pretty much out of the question: for a 6-9 months period interest is lower than savings.

The best I was able to come up with (according to bankrate.com) were:

• Capital One Interest Plus Online
  Savings – 1.2% + 10% on the
  interest earned.

• American Express High Yeild Savings – 1.15%

• ING Direct Electric Orange Checking – 1.15%

According to their websites all of them are FDIC members.

Are there any other options? I don’t really know anything about bonds. Are they a viable option?

Final Solution:

My boss recommended I check out United Central Bank ( they are a Texas bank with locations in CA, IL & TX, obviously the website.)

They are offering 2.02 % on a 60 months CD – but here is the kicker, if I need to pull the money before it matures, they only take the last 2 months of interest as a penalty. So I think that’s a good solution for me. The website says they are FDIC insured and there are a brick and mortar branches not far from me.

Update:
This bank I mentioned, doesn’t seem to exist anymore, through a series of purchases. So scratch that suggestion.

Thank you everyone for your recommendations.