From Hardening WordPress

Securing wp-config.php¶

You can move the wp-config.php file to the directory above your WordPress install. This means for a site installed in the root of your webspace, you can store wp-config.php outside the web-root folder.

Note that wp-config.php can be stored ONE directory level above the WordPress (where wp-includes resides) installation. Also, make sure that only you (and the web server) can read this file (it generally means a 400 or 440 permission).