While it is possible to expressly create a general, a special, or a specific bank deposit, the determination of the type established usually is a matter of construing the intention of the parties from the facts and circumstances surrounding the transaction. No set form is necessary for their validity Like any other contract, the relationship established arises out of the mutual understanding of those creating it. The Restatement of the Law of Trusts has taken the view that the relationship depends upon the manifest intention of the parties, and that if the money is to be kept or used for the benefit of the depositor or a third person, it is a trust. But if the bank is to pay a similar amount in return, it is a debt.
Frank T. Rosenquist,
Notes and Comments,
Preference in Bank Deposits,
10 Wash. L. Rev.
Available at: https://digitalcommons.law.uw.edu/wlr/vol10/iss2/6