A company that takes in money from individuals or companies and uses those funds to purchase financial assets such as deposits, loans, and securities as opposed to tangible property. Financial institutions are split into two types: depository and non-depository. Depository firms are banks, credit unions, and savings and loans that pay interest on deposits and then lend money in the form of interest-earning loans. Non-deposit firms offer pension funds, life and property/
casualty insurance policies, and retirement income in exchange for receiving premiums payments or contributions to retirement accounts from their clients.