YOU ASK:
What is the definition of Depository Institution?
WE ANSWER:
A depository institution is a financial institution that the government has given the legal right to accept money deposits from their customers. These include banks, credit unions, thrift institutions, building societies and other groups that can accept savings and that will pay a certain interest rate. This is sometimes a fixed or a variable interest.
The depository institution can solicit deposits such as time deposits and demand deposits.
In the United States, the depository institutions fall under the regulation of the FDIC or the Federal Deposit Insurance Corporation. Depository Institutions are also required to put a specified portion of their deposits in reserves.
Was this insurance question and its answer useful?
| Not a bit | Very useful |
Have an Insurance Question? Ask For Insurance
More insurance terms around depository institution:
- Deregulation
- Derivatives
- Difference in Conditions
- Diminution of Value
- Direct Premiums
- Direct Sales/ Direct Response
- Direct Writers
- Directors and Officers Liability Insurance
- Disability Income Insurance
- Disability
- Demutualization
- Demand Deposit
- Defined Contribution Plan
- Defined Benefit Plan
- Deferred Annuity
- Deductible
- Decreasing Term Life Insurance
- Declined Risk Class
- Declaration
- Death Benefit