What are the Benefits of a 3-in-1 Demat Account

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  • 27 Dec 2023
What are the Benefits of a 3-in-1 Demat Account

Key Highlights

  • A 3-in-1 demat account integrates demat, trading, and savings accounts into a single platform for investors.

  • The account facilitates swift and automated transactions. So, it facilitates seamless transfer of funds between savings and trading accounts during transactions.

  • The account activation process involves minimal paperwork. You also get E-KYC facility.

  • With a 3-in-1 demat account you can hold investments conveniently. Nomination facility is also available for additional security.

  • Investors get access to modern trading tools and mobile apps for on-the-go monitoring of their investments. This enhances the overall user experience.

A 3-in-1 demat account is a combination of demat account, savings account, and trading account. You may use your trading Account to purchase and sell stocks and store them demat account. Further, you can use the savings account for all the transactions.

You typically require separate accounts for savings, demat, and trading. So, one must reach out to multiple brokers and banks. Here, transferring funds from a savings account to a trading account is necessary to carry out a trade. This process may take many hours or even a day. The 3-in-1 account makes the process faster and easier. When you purchase shares, money from your savings account is automatically transferred to the trading account. Then, the securities are transferred to the demat account.

The following are the noteworthy features of 3-in-1 demat accounts.

  • You get all three accounts at the same time.

  • Very little paperwork is involved. Your PAN and Aadhar card, are sufficient.

  • E-KYC facility is available.

  • Your demat and trading account will be active within a day after the KYC procedure.

Now let’s find out the 3-in-1 demat account advantages.

1. Simple to open: A simplified procedure for opening new demat and trading accounts is advantageous to customers. It facilitates the procedure and saves time and effort. Customers may have a good experience with their 3-in-1 accounts, thanks to automated processes.

2. No minimal balance requirements: 3-in-1 demat accounts usually have no minimum balance requirement. So, it provides flexibility, accessibility, and convenience. This encourages financial inclusion. Moreover, customers can easily manage their funds and use their resources according to their needs and preferences.

3. Hold investments: The value of your investments may increase over time. Holding onto your investments allows you to weather volatility and short-term market swings. It can also assist you in avoiding transaction fees for purchasing and selling shares frequently. You may also benefit from the power of compounding if you hold onto your assets for a long time.

4. Nomination facility: 3-in-1 demat account holders can nominate their family members. This makes sure that the assets and investments are in safe hands in case of their death.

5. Easy review of nomination: This facility improves control and transparency. It enables investors to easily view and manage their nomination data with a few clicks. Account holders may use it to monitor the nomination status and make quick adjustments as required. So, their assets and investments are more secure since their nomination data is up to date.

6. Purchase and sell stocks conveniently: The access to a variety of stocks and other financial products through a single account is one of the key 3-in-1 demat account advantages. It simplifies the investing process, enabling investors to manage their portfolios easily. It streamlines the investing process and offers a real-time trading facility.

7. Modern trading tools: You get access to the most sophisticated trading tools. So, it becomes easy to make appropriate investment decisions. With the use of technical analysis tools, risk management techniques, and real-time market data, investors may make well-informed decisions. Hence, you get more flexibility, control, and transparency.

8. Monitor investments anywhere: Monitoring your investments is easier with a 3-in-1 demat account. You can download the app and access it on your phone. With a few taps on your mobile, you can quickly monitor your investments. It doesn’t matter whether you're at home or travelling somewhere. You also get real-time updates, which saves you time. You can reduce risk, increase profits, and make wiser financial decisions with the help of these tools.

Conclusion

A 3-in-1 demat account includes a demat, trading and savings account. You can hold funds in the savings account and trade assets with the trading account. Then you can hold these securities conveniently in a demat account. All this becomes possible with a single account. There are a number of 3-in-1 demat account benefits. The biggest advantage is the seamless transactions. Moreover, tracking and managing investments is also quite easy. 3-in-1 demat accounts also offer sophisticated trading tools. They help to efficiently trade in the share market. Thus, it is ideal for both short and long-term investors.

FAQs on 3-in-1 Account Benefits

Yes, you can open a demat account without a trading account. However, you will only be able to invest in initial public offerings (IPOs). You won't be able to buy or sell shares on the stock market if you don't have access to a trading account.

Yes, there may be a minimum balance requirement for demat accounts. It usually varies with different brokers.

Any Indian resident who is 18 years of age can open a 3-in-1 demat account. However, he must have the essential documents required to open demat accounts.

Yes. If you have all the necessary documents, you shall get the demat and trading accounts very quickly. They should be active within 24 hours after completing the KYC (Know Your Customer) process.

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