Deposit Insurance Fund
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[edit] Deposit Insurance Fund (DIF)
The FDIC merged the Bank Insurance Fund (BIF) and the Savings Association Insurance Fund (SAIF) to form the Deposit Insurance Fund (DIF) on March 31, 2006 in accordance with the Federal Deposit Insurance Reform Act of 2005. FDIC maintains the DIF by assessing depository institutions an insurance premium. The amount each institution is assessed is based both on the balance of insured deposits as well as on the degree of risk the institution poses to the insurance fund.
[edit] Depositors Insurance Fund (DIF)
Depositors Insurance Fund (DIF) was created by the Commonwealth of Massachusetts, USA, in response to the large number of Massachusetts bank failures during the Great Depression. The Federal Deposit Insurance Corporation (FDIC) was inspired by the DIF.
After the FDIC was created, the DIF was modified to cover all amounts not covered by the FDIC. Typically the FDIC covers the first $100,000 of an account; DIF will cover any amount above that. As a result, an account holder of a Massachusetts bank has all of their deposit insured, between the DIF and FDIC.
