FDIC Bank Insurance: What You Need to Know About the Bank Insurance Fund (BIF)

The Federal Deposit Insurance Corporation (FDIC) is an American institution that provides insurance for funds deposited by citizens into banks and thrift organizations. One way the FDIC insures deposits is through the Bank Insurance Fund (BIF). The purpose of this fund is to assist bank customers in the event that a bank becomes bankrupt. If a bank goes bankrupt, each account holder is entitled to receive up to $250,000 USD in insurance coverage.