A term deposit is one of the simplest savings products: you hand over an amount of money to the bank for a set period (from a few months to several years) and, in exchange, the bank pays you interest fixed in advance.
Limited liquidity
Unlike an interest-bearing account, the money in a deposit isn't freely available: cancelling it before maturity usually involves penalties or the loss of part (or all) of the interest earned.
Guarantee
In Spain, the Deposit Guarantee Fund covers up to €100,000 per holder and institution, making deposits one of the safest savings products in the event of a bank failure.
Taxation
The interest is taxed as investment income within the savings base of IRPF (Spain's personal income tax), with withholding tax applied directly by the bank.