Where do depository institutions get their money?

Depository institutions (aka banks), which includes commercial banks, savings and loans, and credit unions, receive money from depositors to lend out to borrowers. Nondepository institutions, such as finance companies, rely on other sources of funding, such as the commercial paper market.

Do depository institutions make deposits?

These institutions accept deposits and primarily use the deposits to offer mortgage loans, commercial loans, and real estate loans.

What is the name given to financial institutions licensed to accept customer deposits?

Commercial Banks A commercial bank is a type of financial institution that accepts deposits, offers checking account services, makes business, personal, and mortgage loans, and offers basic financial products like certificates of deposit (CDs) and savings accounts to individuals and small businesses.

Do credit unions accept deposits?

Like banks, credit unions accept deposits, make loans and provide a wide array of other financial services. But as member-owned and cooperative institutions, credit unions provide a safe place to save and borrow at reasonable rates.

Where does the landlord hold the deposit money?

The landlord must hold your deposit money in a trust account and provide you with the name and address of the financial institution. The landlord is legally entitled to any interest garnered on the deposit money unless another agreement is reached between you.

What kind of bank is a depository institution?

Loading… 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.

Can a landlord credit a security deposit to a tenant?

If the prospective tenant moves into the unit, the landlord must credit the amount towards the security deposit or first month’s rent. If the tenant chooses not to occupy the unit, the landlord may legally keep the holding deposit as long as it follows the conditions laid out in their written statement.

Can a landlord collect a deposit in Washington State?

Verbal rental agreements are valid in Washington State, but landlords must give tenants a rental agreement in writing in order to collect a deposit. The rental agreement must state the terms and conditions under which the deposit is refundable, as well as where the deposit is being held.