Initially recorded at fair value plus transaction cost. Subsequently measured at amortized cost, with interest accrued using the effective interest rate
method minus impairment.
Future cash inflows of the deposit need to be discounted at applicable market interest rate of a simile deposit in the market to arrive at the fair value.
As far as concern a short term deposit, the amounts deposited may be the fair value since the effect of discounting may be immaterial.
Reference: IAS 39