The 3-in-1 account is the set of 3 accounts which are
linked together for seamless transactions between them. The 3-in-1 account
makes the stock market investment very easy for casual investors and beginners
in the stock market.
Note that most beginners in the share market use word 'demat account in India'
for 'demat + trading account'. But technically they are different. The Trading
account allows you to trade in stocks while the Demat account holds the stocks
you buy in electronic form. Here are more differences
between The Trading Account and Demat Account.
Which bank offers
demat account?
All large banks in India offer demat account. This
includes SBI, PNB, ICICI Bank, HDFC Bank, Yes Bank, Axis Bank.
Demat account is an account where you hold the shares of
the company in electronic format. They are similar to a bank account but
instead of keeping money, we keep shares, mutual funds, bonds, ETFs, etc. in
demat account.
Which
is the best bank to open a Demat Account in India
Following are 5 best banks to offer demat account:
- ICICI Bank
- HDFC Bank
- Kotak Mahindra Bank
- Axis Bank
- SBI Bank
They all are very similar in their offering, charges,
trading platform and customer services.
We suggest you open the 3-in-1 account with your existing
bank. As you already have a relationship with them, it makes it easy. If your
bank doesn't offer demat account, you could pick up any of the banks listed
above.
ICICI bank Demat account is the best among all others for the following reasons:
- Offering 3-in-1 account for over 20+ years.
- 10+ lakhs active customers.
- Nice website and mobile app (ICICIDirect) to manage
demat account online.
- Invest/trade in Stocks, F&O, Mutual Funds, ETF, FD,
Insurance, Loan etc.
- Customer services in branches of ICICI Securities.
Note that other banks like HDFC, Kotak, Axis, Yes and SBI
are equally good.
Top 5 Bank Demat
Account
1. ICICI Bank Demat and Trading Account
ICICI Bank is a leading private bank in India. ICICI offers
trading and demat account services for 20+ years. ICICI Bank's online trading
website and mobile app; ICICIDirect is the one which
is the best bank to open a Demat Account.
If you have a bank account with ICICI, it is highly recommended
to convert your saving account in ICICI Bank 3-in-1 investment account.
ICICI demat brokerage charges are higher in comparison to
the online discount stock broker like Zerodha and 5paisa. But
discount stock brokers do not provide 3-in-1 account, trading tips, local
support and relationship manager.
2. HDFC Bank Demat and Trading Account
HDFC is the 2nd largest and most
respected financial services provider in India. HDFC started offering the demat
account in the year 2000 and held the position of 2nd largest
full-service broker in India.
For HDFC bank account holder, it is very convenient to
open a 3-in-1 account and start investing in the Stocks, Mutual Funds, Corporate
FD's, NCD, Bonds and many more financial instruments online as well through
branches or relationship manager.
HDFC demat brokerage charges are highest among the
industry. They charge premium brokerage for their 3-in-1 account, research and
local support through bank branch offices.
3. Kotak Bank Demat and Trading Account
Founded in 1994, Kotak Securities is a subsidiary of
Kotak Mahindra Bank. Kotak 3-in-1 account comes with
online trading and investment, investment through personal relationship manager,
research and trading tips, portfolio analysis and many other features.
Kotak Securities is 4th largest
stockbroker in terms of the number of the customer.
Kotak demat brokerage charges are available on our Kotak Bank 3-in-1 Account Review page.
4. Axis Bank Demat and
Trading Account
Axis bank is a fast-growing private bank. Axis bank
3-in-1 account offers investing in the stock market as well as
many other financial products like mutual funds, FD, Insurance etc. Axis Direct
website and mobile app allow customers to invest online and manage
which is the best bank to open a Demat Account.
Research reports, trading tips, dedicated relationship manager
and 3-in-1 account are among the major advantages of Axis Bank Demat account.
Axis bank is the 6th largest stock broker
in India. Find Axis Bank Demat brokerage charges at out Axis Bank 3-in-1 Account Review page.
5. SBI Bank Demat and Trading Account
SBI offers online trading and investment services through
SBI 3-in-1 Account. SBI is 10th largest full-service broker.
SBI demat account advantages include its reach to rural areas, strong research
and advisory, online trading platform, a wide range of investment options and
local customer service.
If you already have a bank account with SBI, go ahead and
open a Demat account with them. It is simple and makes stock market investment
and trading very easy.
SBI Demat brokerage charges and trading plans are
available on our SBI Bank 3-in-1 Account Review page.
Conclusion
A demat account with a bank is the best option available
for beginners and casual investors. Almost all large banks offer a 3-in-1 account.
This account offers hassle-free stock market investment. It actually doesn't
matter which bank you choose for your demat account as they offer very similar
services at almost the same demat brokerage charges.
Once you understand how stock market transitions work and
increase your trading frequency, it is recommended to move to discount brokers
like Zerodha, 5paisa or ProStocks to save your brokerage cost up
to 90%.
