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I've always learned that you're supposed to have at least 3-6 months worth of comfortable living expenses saved up in the event of an emergency, or in case you loose your job and need money to pay the bills. In excess of that, you should re-examine your finances and see if all that "extra" money could be applied toward something more profitable - like a retirement plan, 401k, pension, CD, stocks, or bonds. Like mentioned earlier, savings accounts don't have a great return on investment, hence why I suggest investments or CDs/bonds. Also, you might want to look into "online" savings institutions like ING Direct or eTrade. They usually have 4-6% on their accounts.
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