Best Banks in India to Open 3-in-1 Demat Account

It is year 2006 banks started integrating the demat and trading account with the Savings account to provide the 3-in-1 demat accounts to the investors.  It was a huge hit with people who were conservative who prefer to have single platform for both investment and banking needs. But since then, they lost their sheen and investors nowadays like to open their account only with top Indian banks which provide best 3-in-1 demat account. No point in opening the demat account if the bank does not have good numbers of ATMs hence you don’t use it’s savings account for day to day transactions.

Brokerage is not main business of Banks as opposed to that of stock brokers. Broking is bread and butter of stock brokers and hence they tend to provide superior support in comparison to Banks. But 3-in-1 demat accounts have their own pros and cons and let is understand them in this article

  What is a 3-in-1 Demat Account?

3-in-1 demat account is an account offered by banks wherein three different types of accounts, namely, Savings account, trading account and demat accounts are linked to a one single account.

Usually Demat and trading account is opened with a Depository Participants (Known as “Stock broker” in layman parlance and attached to NSDL or CDSL) and Savings Bank account with a bank and link to the trading account. But in case of 3-in-1 demat account, trading and demat accounts are also provided by the bank itself along with the savings account. In this case, banks also acts as DPs.

  Advantages and disadvantages 3-in-1 Demat account

3-in-1 Demat accounts usually have below advantages:

  • Transfer of funds is quick: While in case of withdrawal of funds from a full service broker, one need to login to their back office and place a withdrawal request. The funds will get credited to your linked banked account by end of the day. However in case of 3-in-1 account, funds will reflect instantaneously.
  • Reduced paper work: Bank will take care of the entire cycle of all the three types of account in compliance with SEBI and Stock Exchanges like NSE and BSE.
  • Multiple Investment Avenues : They provide single window for various invest avenues such as equities, derivatives, mutual funds, IPOS, commodities, currency, bonds , company fixed deposits, NPS, insurance and other financial services.

  Disadvantages of 3-in-1 Demat accounts :

  • Minimum Average Balance : If you already have a savings bank account but opening another one as part of 3-in-1 demat account, it will be a burden to maintain the minimum average balance which is Rs10,000 for urban and Rs5000 for rural accounts.
  • Higher Brokerage: Brokerage charged by the Banks are higher compared to the full service broker.  Usually the full service brokers such as Angel broking and Sharekhan charges 0.3% for delivery whereas Banks offering demat account charge around 0.5%.
  • Annual Maintenance Charges : Some brokers are offering Zero Annual Maintenance Charges (AMC) which is a annual fees customer has to pay the broker for maintaining his account. In case of banks, the AMC charges are are also usually high.

NOTE:

If you are really concerned about the brokerage, you should have a look at another types of brokers called Discount Brokers. If you dont know about discount brokers , we strongly suggest you to read this article about various types of Stock brokers of India.

Discount brokers such as Zerodha charge Rs 0 (Zero) for delivery and Rs 20 for intraday traders. For example, if one intends to invest Rs 10,00,000 then with 3-in-1 demat account, the brokerage fees will be around Rs5000 whereas with discount broker it will remain zero irrespective of quantum of investment.

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  Best 3-in-1 demat accounts of India

Almost all the new age banks provide the demat account. Some of them open the demat account by default even for the people who go to them to open savings bank account!. But if one is genuinely interested in opening the demat account, then he/she should stick with big names only.

Here is the list of Best banks offering 3-in-1 demat accounts:

  1) ICICDirect from ICICI Bank:

icicidirect logoICICIDirect is the brokerage arm of ICICI bank. ICICIDirect is the biggest stock broker of India as on date serving more than 15 Lakh+ customers. One can find the ICICIDirct office in most of the major cities and towns of India. It is pioneer in opening up the online demat account culture in India.

ICICDirect brokerage charges : 

Equity Delivery: 0.55%

Equity Intraday: 0.275%

Equity Futures:  0.05%

Equity Options: Rs 95/lot

For detailed information about the various brokerage slabs of ICICIDirect, visit ICICIDirect review page.

  2) Kotak Securities from Kotak Bank

Kotak_Securities-reviewKotak Securities from Kotak Mahindra Bank offers 3-in-1 account in the name of Trinity account. Though this account apart from investment, one can login to their Securities Academy which teaches about investments and stock markets. They also send periodic SMS alerts and research reports on the economy, investment plans and companies that have a good prospects in the market.

Kotak Securities brokerage charges : 

Equity Delivery: 0.50%

Equity Intraday: 0.05%

Equity Futures:  0.05%

Equity Options: Rs 100/lot

Read: Complete review of Kotak Securities and its brokerage structure

  3) HDFC Sec from HDFC Bank

HDFC_Security-logoHDFC Securities is around us for more than a decade and service diverse customer base including retail and Institutional Investors. HDFC  Securities also provide seamless transfer of funds between trading and savings account.

HDFC Securities brokerage charges :

Equity Delivery: 0.50%

Equity Intraday: 0.05%

Equity Futures:  0.05%

Equity Options: Rs 100/lot

Read the complete review of the HDFC Securities here

  4) SBI Cap Securities :

Sbicap-securities-logoSBICAP Securities Ltd (SSL) is the broking arm of the State Bank Group and a wholly owned subsidiary of SBI Capital Markets Ltd. SSL commenced operations in the first quarter of financial year of 2006-2007 with a view to providing primary and secondary capital market access to investors. But as you know the SBI bank is with us for decades and some of the senior citizens still swear by nationalized banks so they normally prefer to open the demat account with these banks.

SBICap Securities brokerage charges :

Equity Delivery: 0.50%

Equity Intraday: 0.05%

Equity Futures:  0.05%

Equity Options: Rs 30/lot

Read : Complete details about the SBICap securities brokerage charges

  5) AxisDirect from AXIS Bank :

Axis-Direct-brokerage-logoAxis Direct (Axis Securities)  is subsidiary of Axis Bank Limited (Erstwhile UTI Bank). Axis Direct was incorporated in year 2005 and been involved in the offering and distribution of various financial  products to retail customers in India. AxisDirect has over 1.5Lakh Active customers and is one of the Top 10 Brokerage firm of the country.

AxisDirect  brokerage charges :

Equity Delivery: 0.50%

Equity Intraday: 0.05%

Equity Futures:  0.05%

Equity Options: Rs 100/lot


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Read : Complete review of the AxisDirect and its details of the Brokerage Charges

  Final Thoughts!

In our opinion, for a long term investor, the brokerage charges hardly matters. When the returns he is looking are in the range of couple of times the investment, few cents of difference in the brokerage charges wouldn’t make large difference when compared to the peace of mind he gets in a good 3-in-1 demat accounts. However it is essential to carry out a detailed comparison of above 3-in-1 demat accounts in all aspects before opening the account. And for a trader, these accounts are a big NO and should prefer the trading and demat accounts with lowest brokerage charges.

Do you already have a 3-in-1 demat account with any one of the above banks?, if yes, please share your experience with the fellow traders through comments.

Filed Under : demat Account

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