what are the benefits of a depository institution 
there are several advantages to using a depository institution such as a bank first depositories provide safekeeping for assets cash and valuables eliminating the risk of theft and loss they typically pay interest on your deposits which will grow your balance depositories also create liquidity by lending out money the bottom linea depository is a place to deposit or place assets such as cash or securities depository institutions can include banks credit unions and savings and loans institutions when you place your funds in a depository the organization often will pay you interest on your deposit it may also loan out those funds in the form of mortgages or personal loans however a depository must return your deposit when you request it the federal deposit insurance corporation guarantees your deposits at participating institutions up to certain limits 