depository institution

{{Short description|U.S. financial institution legally allowed to accept monetary deposits from consumers}}

{{Globalize|article|USA|2name=the United States|date=December 2010}}

Colloquially, a depository institution is a financial institution in the United States (such as a savings bank, commercial bank, savings and loan associations, or credit unions) that is legally allowed to accept monetary deposits from consumers. Under federal law, however, a "depository institution" is limited to banks and savings associations - credit unions are not included12 U.S.C. 1813©. (debatable). {{ cite web | title = Journey of Circulation | url = https://www.uscurrency.gov/life-cycle/journey-circulation#:~:text=Federal%20Reserve%20Bank%20cash%20offices%20distribute%20banknotes%20to%20the%20public,and%20savings%20and%20loans%20associations.| accessdate = 2024-08-29}}

An example of a non-depository institution might be a mortgage bank. While licensed to lend, they cannot accept deposits.{{cite web | title = nondepository financial institution | publisher = TheFreeDictionary.com | date = 2014 | url = http://www.thefreedictionary.com/nonndepository+financial+institution | accessdate = 2014-07-28 }}