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It's not bad as such, but there are better things to do with it.
I use a savings account as a general sort of slush fund, so that I have instant access to a reasonable amount of money if I need it. The rule of thumb I believe is three months' living expenses, although I tend to keep slightly less than that available.
The problem, though, is that the return on savings accounts is pretty much negligible. Thus it works well for the purpose outlined above (especially if your bank is like mine, and waives all fees as long as you have a minimum balance in the account) for large amounts of money that you don't plan on spending in the near future, you're better off to invest that in something with more growth potential. Mutual funds, GIC's, RRSP's, whatever.
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I wake up in the morning more tired than before I slept
I get through cryin' and I'm sadder than before I wept
I get through thinkin' now, and the thoughts have left my head
I get through speakin' and I can't remember, not a word that I said
- Ben Harper, Show Me A Little Shame
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