>When you give money to a bank, the bank owes you money. You are a creditor and you technically own debt (which may or may not give interests). This debt is money.
the bank does not owe you the money you put in, they owe you the interest payments.
look up "valuing a perpetuity", study the equations, that's how it works. If somebody owed you the interest payments and the money, your net worth (in regard to this money) would double. They only owe you the original money if you give back your rights to the interest payments.
I did study finance in grad school, I'm not making this up. I am using simplified language to stay focused on the simplicity of what is happening.
A bank account is not a perpetuity. You don’t need to use DCF to value it. Most current accounts don’t even actually give interests let alone an annuity you would need to discount. It is straight debt.
> If somebody owed you the interest payments and the money, your net worth (in regard to this money) would double.
Even for deposits, the way this works is that you discount future cash flow on top of your principal to get to your net present value. The NPV of a saving accounts above inflation viewed as a perpetuity is infinite thanks to the magic of compounding interests. Sadly, “in the long run, we are all dead”.
You must be using a different definition of “owe” than the rest of the world. By any layperson’s and lawyer’s definition, any money you deposit in a bank is definitely owed back to you. And it’s definitely placed in the liabilities column of their accounting books.
Any interest is certainly owed as well since it’s a consideration of a deposit agreement, but both are owed, not just the latter.
the bank does not owe you the money you put in, they owe you the interest payments.
look up "valuing a perpetuity", study the equations, that's how it works. If somebody owed you the interest payments and the money, your net worth (in regard to this money) would double. They only owe you the original money if you give back your rights to the interest payments.
I did study finance in grad school, I'm not making this up. I am using simplified language to stay focused on the simplicity of what is happening.