Terminating an EBS-backed instance will not cause your data to be deleted. You can still access the EBS volume until you delete it (unless you set it to delete when your instance is terminated).
Quite simply, EC2 is running your virtual server on some physical server. The root filesystem can either be on a local disk (ephemeral storage) or on network attached storage (EBS). With EBS, they can snapshot it for backups or to make a copy, so EBS is far more flexible, although not as fast as a local disk in the server where your instance is running.
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