Best Bank to Open a Demat Account: Any investor who is looking to invest in stocks must have a Demat and Trading account to buy and sell shares in India. In the year 2006, many banks started offering a Demat and trading account along with the savings account to provide a 3-in-1 account to their customers.
The 3-in-1 account is the set of 3 accounts that are linked together for seamless transactions between them. The 3-in-1 account makes the stock market investment very convenient for regular investors and beginners in the stock market.
In this article, we will list out all the major banks that offer the opening of a Demat account with them, and then we will review which bank is best for a Demat account. Let’s get started.
Which bank offers a Demat account?
All large banks in India offer Demat accounts. The list includes ICICI Bank, HDFC Bank, Axis Bank, Kotak Bank, SBI, Citi Bank, PNB, and YES Bank.
A Demat account is an account where you hold the shares of a 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 them.
Best bank to offer Demat account in India
Following are 5 best banks to offer demat account:
- ICICI Bank
- HDFC Bank
- Kotak Mahindra Bank
- Axis Bank
- SBI Bank
All the above banks are almost similar in their offering, charges, trading platform, and customer services. It is suggested that you open the 3-in-1 account with your existing bank.
Banks offering Demat account India
Below is the fee that brokers charge along with their services –
|Broker||Acct Opening Fee||Demat AMC|
|ICICI Direct||₹0||₹700 (from 2nd year)|
Top 5 Bank Demat Account
1. ICICI Bank Demat and Trading Account
ICICI Bank is a leading private bank in India. The high-quality and customized services along with the 3-in-1 account facility are what the company counts on to be able to capture such a vast number of active clients.
If you have a bank account with ICICI, it is highly recommended to convert your saving account to the ICICI Bank 3-in-1 investment account.
The company is known for providing tailor-made services. Since they offer 3-in-1 account services, many investors would prefer to trade with them despite being charged the high brokerage costs.
Read the detailed review of ICICI Direct to get more insights.
2. HDFC Bank Demat and Trading Account
HDFC is the 2nd largest and most respected financial services provider in India. HDFC Securities Limited is a subsidiary of a top-notch private sector bank HDFC and has been in existence for the last two decades.
For HDFC bank account holders, it is very convenient to open a 3-in-1 account and start investing in Stocks, Mutual Funds, Corporate FD’s, NCD, Bonds, and many more financial instruments online as well through branches.
Since they provide a 3-in-1 account facility, the transfer of funds is done in a much easier way than with any other stockbroker.
Read HDFC Securities Review for more detail.
3. Kotak Bank Demat and Trading Account
Ranked among the top five full-service brokers and one of the very few stockbrokers who provide a 3-in-1 account facility, Kotak Securities Limited is acclaimed to be unconventional when it comes to delivering unique services to their clients.
The services provided by the company include Demat Account, Trading Account, Intraday Trading, Stock recommendations, PMS and IPO services. Their service of providing 3-in-1 account facility makes investors trading experience easy and quick.
4. Axis Bank Demat and Trading Account
Axis bank is a fast-growing private bank. Axis Direct is among very few brokers that offer integrated Trading-Demat-Bank accounts. Axis Direct has over 4.3 Lakh active customers and is one of the top 10 brokerage firms in India.
Axis Direct charges minimum brokerage of Rs 20 per trade or 2.5% of the trade value whichever is lower.
5. SBI Bank Demat and Trading Account
SBICAP Securities Limited (SSL) is one of the popular names in the stockbroking industry who are listed amongst the few large full-service stockbrokers that offer 3-in-1 account facilities.
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.
They provide a quite precise brokerage and other charges which are simplified considering the public interest at large.
SBI Demat brokerage charges are available on our SBICap review article.
A Demat account with a bank is the best option available for beginner investors. Almost every major bank offers a 3-in-1 account. This account offers hassle-free stock market investment.
Hopefully the article will help you to choose best bank for a Demat account. Let us know in the comment section with which bank you have your 3-in-1 account. Happy trading!