Have you heard of 3-in-1 Demat account in India? Even if not, here you’ll gain a lot of useful information on the popular stock brokers offering these multiple features.

Bank accounts often have one purpose, to keep their client’s money safe. Since 2006, people investing in stock markets have risen significantly, and integrating bank accounts with trading accounts came to the picture.

Its where bank and trading accounts were made into one to be called a 2-in-1 account. But a 3-in-1 account comprises another account, which is the Demat account. However, if you wish to learn more about the 3-in-1 Demat account? Then read on, we have enlisted a surplus number of things that could be of use.

What is a 3-in-1 Account?

As the name suggests, a 3-in-1 account comprises three accounts: a bank account (a standard bank account for safekeeping money), Demat account (for the holding of equity shares purchased by you), Trading account (the account of a shareholder which allows the user to trade in equity, commodity, F&O, and more) clubbed into one account.

Such demat + trading + savings accounts’ significant attracting point is the clubbing of all the accounts and the seamless interaction that the user can have through the accounts. There is a comprehensive itinerary of investment products up for grabs through such accounts.

Now, how it works? When a buyer purchases stocks, money gets directly debited from the savings bank account, and the stocks purchased are stored in the Demat account. In the same manner, when it comes to the selling part, it is sold through the trading account where the profit/return on your investment is credited directly into your bank account.

One thing to keep in mind is that the cost of using such an account is generally high. Banks generally levy a higher brokerage for intraday and delivery transactions through a 3-in1 demat account.

But you have to pay a premium if you want additional features, don’t you? On the contrary, the benefits of using such a demat and trading account are generally high and do offer some lucrative ways for people to invest in the stock market.

If you’re a long-term investor in the stock market, then availing such hassle-free services is a boon despite having to pay a bit extra.

A 3-in-1 Account – Benefits

Let’s count on the benefits of opening the benefits of a 3-in-1 account:

1. Paperwork Reduction

The paperwork is reduced drastically, where the banks would take over all the required documents that have to be filled. You can have the seamless experience of using the three accounts in compliance with the SEBI and stock exchanges to trade in the BSE and NSE.

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2. Multiple Investment Avenues

Through one single account, traders have a broad avenue opened for them up for investment. These include currency, bonds, mutual funds, equities, derivatives, IPOS, commodities, NPS, insurance, and other financial services.

3. Fund Transfer becomes Quicker

If you have separate accounts for trading and banking, then getting the money from the bank account requires some levels of hassles. You have to go to the bank office, place a withdrawal request, and get funds from your full-service broker. Of course, you have the online fund transfer also these days. But with a 3-in-1 account, it gets much simpler since your funds would be credited to your bank account at the end-of-day after placing a withdrawal request.

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A 3-in-1 Demat Account – Factors to Consider

Before opening a 3-in-1 demat account, you must consider some crucial factors:

1. Minimum Balance Requirements

In a 3-in-1 demat account, banks often have specific clauses where you will have to maintain a certain bank balance, carry out trades to a certain extent, and what not. Each of these clauses is variable from one 3-in-1 account to another.

2. Trading Facilities

These facilities include the tools that each broker offers. It provides training tips, research advice, trading tools, and much more. Choose wisely to see what these stock brokers in India have to offer to elevate your trading experience.

3. Brokerage Charges

These charges vary from one broker to another. It also depends on the usage of the account. Mostly the charges are permanent or vary based on the amount of trading done in an account. Compare each of these charges and then choose your 3-in-1 account.

4. Segments

Not every broker you choose to open a 3-in-1 account would suffice in trading with particular segments such as derivatives, currency, or commodity. Check into this weather they offer all trading options or its subsidies to a few trading options.

Best 3-in-1 Demat Account in India: Top 5 List 

There is a wide array of banks offering such services, but the best are enlisted below. So, let’s have a quick look on each one of the 3-in-1 accounts:

1. Zerodha, in Partnership with IDFC Account

Zerodha happens to be India’s largest stock brokerage platform. The integration of IDFC bank with Zerodha brings customers a 3-in-1 account opening format where your trading account, bank account, and Demat account are linked under one account.

The process of opening such an account is seamless, and existing Zerodha users can do the same either by opening a new account with IDFC bank or integrating their existing one with Zerodha. Though the costs can vary significantly with the type of trading, you are looking out for.

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The charges for opening a 3-in-1 account is 200 rupees. To open a 3-in-1 account for commodities is 100 rupees, and the Demat account maintenance charges are 300 rupees per annum. Also, you get all the access to the advanced trading tools that Zerodha has to offer, such as Kite 3.0, Kite mobile app, and Kite software program.

If you wish to know all about this best stock broker, do have a look at Zerodha: A Complete Review

2. ICICI Direct

ICIC direct is one of the premier stock brokerage services offered by ICICI in the country. The 3-in-1 account that is being provided by the company involves an ICICI trading account, ICICI bank account, and ICICI Demat account.

ICICI direct provides ways which are straightforward and efficient in making investments in the stock market or financial instruments. It also offers timely payout options along with free hassle-free settlements bundled with personalized services.

The broker trades in the BSE and NSE. The plans offered by the broker are given as follows.

  • I-secure plan.
  • ICICI Direct Prepaid Brokerage plan.
  • ICICI Direct Prime Plan.

The cost of opening an account on ICICI direct is 975 rupees with an annual maintenance fee of 700 rupees for the account. The other costs associated with brokerage fees and other charges are standard.

3. Kotak Securities

Kotak securities offer a 3-in1 account for all banking and trading related purposes. The bank is a depository participant with the NSDL and CDSL. Using this 3-in-1 account provides users with a wide array of options to trade.

Traders can trade in IPO, mutual funds, current derivatives, gold ETD, equity, and much more. Opening the account can avail through the company’s website just by filling on a single form and submitting it to the registered office.

The various brokerage plans offered by the broker to the users is given as follows.

  • Dynamic brokerage plan
  • Fixed brokerage plan
  • Free intraday trading

The charges associated with the brokerage fees and other opening charges vary based on the plan chosen and other criteria. The account opening charges are 700 rupees for a trading account and the annual maintenance of a Demat account is 600 rupees per annum.

4. HDFC Securities

Hailing as an equity trading company, HDFC Securities offers to trade both online and on the go. The unique feature about the 3-in-1 account that they provide is integrating the HDFC securities trading account, bank account, and Demat account all under one roof.

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It offers cash-n-carry under the NSE and BSE, trading in futures options in NSE and day trading in BSE and NSE. The account opening fee for a 3-in1 account is 999 rupees with average balance maintenance of 10,000 rupees for an urban account or 5000 rupees for a rural account.

The brokerage charges are slightly higher when compared to a standard trading account. But the easy integration and transferring of money to your trading account and vice versa makes it a worthwhile experience.

5. Upstox-Indusland Bank

The association between Indusland and Upstox was to bring traders a 3-in1 account that could benefit the lower brokerage charges going a low as 20 rupees per trade with zero balance in the bank account.

The primary advantage of Industox is the ability to use the interest gained from your savings bank to use that in trading and avail customized bank account numbers based on any special occasion.

The charges for opening the 3-in1 account are 200 rupees, whereas the annual maintenance change is at 100 rupees annually. But form the second year, the annual maintenance charge is at 150 rupees.

Through such an account, users can use Upstox’s outstanding collection of trading tools such as Upstox Pro Web, Upstox Pro mobile application, and Upstox NEST trader desktop. The basic brokerage fee charged on every trade is 20 rupees per trade or 0.05% of the trade executed.

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Best 3-in-1 Demat Account – Is it Beneficial?

A 3-in-1 account isn’t for everyone. However, it might have its own way of benefiting customers; it’s widely suited towards the long-term trader where brokerage charges are almost neglected. The returns are way more substantial than the brokerage fees, and it doesn’t matter to the person looking to open such an account.

However, you must look into the overall merits and see how it could prove beneficial to you. Wage out the pros and cons and then go for it. Also, each of the stock brokers does have many pros, but the cons are very hard to figure out. So, target more on this aspect of choosing the 3-in1 account. It should be beneficial for you and not the other way around.

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And yes, do share your personal experiences of opening a trading and demat account with any of the stock brokers in India.