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.
  

What Is a 3-in-1 Demat Account?

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 in your demat account. Further, you can use the savings account for all the transactions.

You typically require separate accounts for savings, demat, and trading. So, you 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.

Key Features of a 3-in-1 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 cards are sufficient.
  
• E-KYC facility is available.
  
• Your demat and trading accounts will be active within a day after the KYC procedure.
  

A 3-in-1 demat account seamlessly links your savings, trading, and demat accounts, offering a smooth and fully integrated investing experience, as highlighted previously. There are certain 3-in-1 demat accounts that have is no upper limit on fund transfers, allowing unrestricted movement of funds between your bank and trading accounts.

Many platforms offer free account opening, making it cost-effective for new investors. Certain 3-in-1 demat accounts also offer zero brokerage on intraday trades, enhancing savings for active traders. Some demat accounts also have additional features like real-time fund transfers, instant account setup via video KYC, intuitive mobile and desktop trading platforms, and access to advanced research reports. These features make it convenient for investors like you to manage, trade, and track portfolios from one platform.

Advantages of 3-in-1 Demat Accounts

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.

Eligibility for a 3-in-1 Demat Account

To open a 3-in-1 demat account, you must be an Indian resident aged 18 years or above, with a valid PAN card, Aadhaar-linked mobile number, and an active bank account. You will also need to complete the KYC process, which can be done online via video verification. A stable internet connection, a blank white sheet for signature capture, and original documents for identity and address proof are essential during onboarding. If you have an existing savings account, you can enjoy a quicker, seamless setup when upgrading to a 3-in-1 demat account. This account is ideal for salaried individuals, professionals, and first-time investors looking for a smooth trading and investment journey.

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.