How much do you need in savings before you're actually protected?
Your emergency fund should cover essential expenses only — housing, food, utilities, insurance, minimum debt payments. Not discretionary spending. Most experts recommend 3-6 months for salaried employees and 6-12 months for freelancers and self-employed people whose income is less predictable.
Your emergency fund should be liquid AND earning interest. A 4-5% APY account makes a real difference over time.