It is the high level of security which makes term deposits so attractive to customers. In this case, security refers to both the invested funds as well as the interest earned. This is because both the repayment of the principal (invested amount) and the payment of interest are ensured in the case of term deposits. This advantage arises due to the fact that neither the principal nor the interest are subject to price fluctuation or interest rate risk.
A foreign currency risk exists only if your investment involves exchanging currency. At the same time, if a term deposit is made in foreign currency, there is a possibility to make an exchange rate gain.