A term deposit is an investment product that allows you to lock away some cash for a set period of time in return for a guaranteed return on your money. The guaranteed interest rate makes term deposits a low-risk investment, but they can also be a handy strategic tool. For example, they can be used to delay a large interest payment until the following tax year, or, if you believe interest rates are about to fall, you can move money into a term deposit in order to lock in the current interest rate.