Bank Insurance Fund

The Bank Insurance Fund (BIF) was a part of the Federal Deposit Insurance Corporation (FDIC) in the United States, established to protect depositors by insuring bank deposits. If a bank failed, the BIF would cover customers’ deposits up to a certain limit, ensuring that individuals do not lose their savings. This fund is financed through premiums paid by banks and helps maintain public confidence in the banking system. Although the BIF was merged into the Deposit Insurance Fund (DIF) in 2006, the concept remains critical for safeguarding consumers' money in banks.