Depository institutions are financial organizations that accept deposits from individuals and businesses. They provide a safe place for people to store their money while offering services like checking and savings accounts. Common types of depository institutions include commercial banks, credit unions, and savings and loan associations. These institutions play a crucial role in the economy by facilitating transactions and providing loans. They use the deposits they receive to lend money to borrowers, helping to stimulate economic growth. Additionally, depository institutions are regulated to ensure the safety and security of depositors' funds.