Why deposit accounts lose money and are high risk

One of the immediate difficulties with any discussion of the risks involved in personal investment is that of defining terms. Everyone knows, for example, the accepted risk hierarchy of the investment classes on offer. It starts with deposit accounts where, as we all know, there's absolutely no risk. Next on the ladder is government gilts and high-grade corporate bond issues. One of the last resorts, in terms of risk at least, is to buy equities direct from the market. If the world still isn't flying past fast enough, though, thrill seekers can always rely on private equity investment ...