Usually I do 2 1/4", folded with 1/4" seam unless it's for Linus and I make the binding wider and usually fold onto front and sew by machine. It's quilting - you may do it however you like! I've even gotten really anal sometimes and did the binding half and half (1 1/2" of 2 different fabrics sewn together then pressed at the seam) so the binding matches front and back. It's cute to do on something small, like a wall hanging or place mats that you want to be reversible.