What type of financial institution allows members to deposit money directly?

The correct answer, which identifies a financial institution that allows members to deposit money directly, is indeed a credit union. A credit union is a member-owned financial cooperative that provides various financial services to its members, including checking and savings accounts where deposits can be made directly.

Members typically join a credit union based on a common bond, such as employment or membership in an organization, which creates a sense of community and shared purpose. Unlike banks that focus on profit generation, credit unions prioritize the financial well-being of their members, often resulting in lower fees and better interest rates on deposits and loans.

In contrast, while banks also allow for deposits, they operate on a for-profit basis and are not member-owned, establishing a different structure and focus. Investment firms primarily deal with securities and investment products rather than direct deposits of money like savings accounts. Mortgage companies specialize in loaning money for real estate purchases and do not offer standard deposit accounts. Therefore, the unique cooperative nature of credit unions specifically emphasizes direct member deposits, making it the best choice in this context.