I cut it at just 2 inches and make a double fold binding.
When I am sewing it onto the front of my quilt, I need to use just a 1/4 inch seam allowance to make sure I have enough to wrap around to the back and cover my stitching line.
And although I use a 1/4 foot for piecing, I hesitate to use it for the binding.
The reason for this is because when applying the binding, I am sewing through several layers (the double fold binding and the 3 layers of the quilt sandwich). A walking foot is best for this to make sure I avoid any puckering on the binding. So I had to find a way to use my walking foot and also to make sure my seam allowance is exactly 1/4 throughout. In other words, I had to create a guide to put on my needle plate to ensure that I could sew at 1/4 in. every time.
For this I used a piece of Dr Scholl's Molefoam Padding that I cut to size with my rotary cutter.
I used my ruler to measure exactly where the 1/4 seam allowance is on my machine and stuck the strip in place (it has a self-adhesive backing).
Alternatively, you could use a piece of self-adhesive craft foam or a small stack of post-it notes.
Now I could sew on my binding and have a perfect seam allowance every time!