Bank deposits are loans

Although termed deposits, bank deposits, whether fixed, savings, or current, are really loans, with banks as borrowers and depositors as lenders.

Why? Because banks can use them and they earn interest.

And banks have no obligation to return the very money deposited.  All they have to do is to pay the same amount deposited plus the interest earned, if any.

But it is different when it comes to a true deposit.

Why? Because, unlike loans, the principal purpose of a true deposit is for the safekeeping and not the use of the thing deposited.

And, above all, the very thing deposited and not simply its equivalent must be returned upon demand.

[References: Titles XI (Loan) to XII (Deposit) of the Civil Code of the Philippines, Article 1980 of the Civil Code of the Philippines, Manuel M. Serrano vs. Central Bank of the Philippines, et. al., G.R. No. L-30511, February 14, 1980, Teofisto Guingona, Jr., et. al., vs. The City Fiscal of Manila, et. al., G.R. No. L-60033, April 4, 1984, Bank of the Philippine Islands vs. Hon. Court of Appeals, et. al., G.R. No. 104612, May 10, 1994, and Maclaring M. Lucman vs. Alimatar Malawi, et. al., G.R. No. 159794, December 19, 2006]

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