Term deposits are savings products offered by banks, credit unions and building societies.
You give them a chunk of money for an agreed term and they give you a fixed rate of interest over that term.
The term can range from as little as one month up to five years.
Depending on the deposit, interest can be paid to you regularly or in one big payment at the end.
When the deposit matures, you can get your money back or roll it over into another term deposit.
The main benefit of a term deposit is that all deposits up to $250,000 are guaranteed by the Government.
The disadvantage is that if you want your money back before the agreed date, you will probably have to pay a financial penalty.
Applying for a term deposit is essentially the same as applying for a bank savings account, and most applications can be made online.