Summer 2006-15 FDIC joins BIF and SAIF to form DIF

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Number 64
Summer 2006
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FDIC joins BIF and SAIF to form DIF

BIF" was the "Bank Insurance Fund" and "SAIF" was the "Savings Association Insurance Fund," both administered by the "FDIC," which, of course, stands for "Federal Deposit Insurance Corporation."

Deposit insurance

As their names imply, BIF insured the deposits in commercial banks, while SAIF did likewise for those held in federal savings associations (remember them?).


BIF and SAIF were the offspring of the 1989 Financial Institutions Reform Recovery and Enforcement Act (known as "FIRREA"). Through FIRREA Congress did away with the Federal Savings and Loan Insurance Corporation (the entity that then insured savings associations' deposits) and transferred the money to the new SAIF fund, to be administered by the FDIC. FIRREA also created BIF to keep the funds apart.


The Federal Deposit Insurance Reform Act of 2005 required that the FDIC merge both funds not later than July 1, 2006; which it has done under the name of "Deposit Insurance Fund," or "DIF." The FDI Reform Act was the same law that raised the limit on deposit insurance for retirement accounts from $100,000 to $250,000, and indexed the amount to inflation.

© 2006 Goldman Antonetti & Cordova, LLC