A depositor is an individual or entity that places money into a financial institution, such as a bank or credit union. This action typically involves opening an account, like a savings or checking account, where the deposited funds can earn interest or be used for transactions. Depositors trust these institutions to safeguard their money. Depositors benefit from various services offered by financial institutions, including access to online banking, loans, and investment options. Additionally, many countries have deposit insurance programs, such as the Federal Deposit Insurance Corporation (FDIC) in the United States, which protect depositors' funds up to a certain limit in case the bank fails.