Even low risk investments have no guarantee. Did you sign an agreement that requires you to put it into savings?

I would follow the letter of whatever terms you agreed to. Any interest rate is low now, I found a 1% interest savings / checking account with Union bank that had no requirements like a CD for length of time it had to be kept in.

I wouldn't take a chance on this sum of money just to get a few dollars more a year on interest. If that $ is to cover your medical expenses related to this condition for the rest of your life - take it as a blessing that the amount seems more than what you will need. You never know. The same procedure or treatment that costs X right now may cost much more in future years.