3-in-1 Accounts: Savings, Demat and Online Trading
What is 3-in-1 Account?
A 3-in-1 account is a combination of bank account, trading account and Demat account. It allows you to hold securities (Demat account), purchase and sell them (trading account) and keep your money safe (savings account). In a 3-in-1 account, the Demat account must be linked to one of the two central depositories, CDSL or NSDL. Brokerage firms that are also part of a banking group provide three-in-one Demat accounts.
This blog provides a detailed overview of the benefits, how to open a three-in-one account and lists out the 5 best to choose from. Read on before deciding if you should open a 3-in-1 account.
Benefits of 3-In-1 Accounts
Detailed below are the various benefits of 3-in-1 Demat accounts:
1. Convenience
A 3-in-1 trading account is quite convenient and easy to use. It enables investors to perform every necessary financial action through a single account. It also lets them access multiple accounts and track all their transactions from one place.
2. Safety
The market regulator, SEBI (Securities and Exchange Board of India), has introduced regulations regarding 3-in-1 Demat accounts to ensure the safety of investors’ assets. Moreover, the National Securities Depository Limited (NSDL) or the Central Depository Services Ltd (CDSL) are responsible for governing these accounts.
This guarantees the security and safety of all your investments and trades on 3-in-1 accounts. With the help of auto-generated reports, real-time statements and portfolio balance, you will also be able to remain updated about your investments.
3. Wide Range of Investment Options
3-in-1 Demat accounts enable you to invest in various financial assets. Besides being able to store stocks, bonds, government securities, mutual funds and ETFs (Exchange Traded Funds), you can consider investing in commodities and currencies. Moreover, you can access normal banking services, purchase or pay for insurance, file taxes or invest in NPS.
4. No Transfer Fees or Waiting Time
When you have a single Demat account or a 2-in-1 account, you need to transfer the required amount from our account to your trading account for investment-related transactions. You might be required to pay fees to the bank or broker for carrying out the transfer.
With 3-in-1 accounts, many of these transfer charges are discounted or waived. Furthermore, the waiting time is greatly reduced as you have only one client. The entire procedure can be completed via quick and easy steps.
5. Access via Multiple Devices
You can access the 3-in-1 account on multiple devices, including desktops and laptops. Some brokerage service providers even offer customer support services via call. This makes it easier to carry out your financial activities from anywhere and at any time at your convenience.
How to Open a 3-in-1 Account?
Given below is a step-by-step guide on opening a 3-in-1 Demat account:
- Fill Out the Demat Account Opening Form
Choose a bank you want to open your 3-in-1 account. Download the account opening form from the website or visit the nearest branch to get the form. Keep your PAN card, Aadhaar card, bank details and income tax returns in hand while filling up the account opening form. Add a nominee while filling up the form.
- Submit Self-attested Copies of the Required Documents
Keep your self-attested copies of PAN Card and proof of address (driving license/Aadhaar Card/Voter ID/passport). Also, passport-size photos and a cancelled cheque is required to open a Demat account.
- Complete the Online Verification Process
Finally, you need to complete the online verification process using your Aadhaar card and IPV link. You will also have to submit an OTP, which you will receive via SMS and email.
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How is a 3-in-1 Account Different From a 2-in-1 Account?
The key difference between a 3-in-1 Demat account and a 2-in-1 Demat account is that a 3-in-1 Demat account comes with a bank account. It provides the trader with a somewhat higher level of convenience. All other functionalities are unchanged. A Demat cum trading account is a 2-in-1 Demat account that allows a trader to trade with simplicity. It allows for trading convenience while remaining distinct from one’s bank account. A three-in-one account includes banking. Both types of accounts have the same Demat and trading capabilities as long as they were opened with the same broker.
5 Best 3-in-1 Accounts of 2023 in India
Listed below are the five best 3-in-1 Demat accounts in India:
- Zerodha 3-in-1 Bank Demat Account (With IDFC First Bank)
- Upstox 3-in-1 Bank Demat Account (With Indusind Bank)
- ICICI Direct 3-in-1 Account
- HDFC Securities 3-in-1 Account
- Kotak Trinity 3-in-1 Account
Their details have been provided as follows:
Here’s a list of the 5 best 3-in-1 accounts of 2022 in India. Go through each of them in detail.
1. Zerodha 3-in-1 Bank Demat Account (With IDFC First Bank)
Zerodha is India’s first discounted broker platform. They have partner offices all around India, with their headquarters in Bangalore. They began operations in 2010, but have already surpassed ICICI Direct and HDFC Securities to become India’s largest stockbroker. Zerodha has partnered with IDFC first to launch a 3-in-1 bank Demat account. With this account, you enjoy low brokerage, seamless fund transfer and all other benefits of a 3-in-1 Demat account. The image below depicts the brokerage charged by Zerodha 3-in-1 bank Demat account.
| Trading Type | Brokerage Charges |
| Equity Delivery | Rs.0 |
| Equity Intraday | Lower of Rs.20 per executed order or 0.03% |
| Equity Futures | Lower of Rs.20 per executed order or 0.03% |
| Equity Options | Rs.20 per executed order |
| Currency Futures and Options | Lower of Rs.20 per executed order or 0.03% |
| Commodity F&O | Lower of Rs.20 per executed order or 0.03% |
2. Upstox 3-in-1 Bank Demat Account (With Indusind Bank)
After Zerodha, Upstox is the second largest brokerage platform based out of Mumbai. Upstox has tied up with Indusind bank to provide 3-in-1 Demat accounts. This 3-in-1 Demat account is known as IndusStox Demat account and it sports a multitude of benefits such as zero account opening charges, no requirement to maintain a minimum account balance and a customizable account number. The image below depicts the brokerage charged by Upstox 3-in-1 bank Demat account.
| Trading Type | Brokerage Charges for Basic Plan | Brokerage Charges for Priority Plan |
| Equity Delivery | Rs.0 | Rs.0 |
| Equity Intraday | Lower of Rs.20 per executed order or 0.05% | Lower of Rs.30 per executed order or 0.10% |
| Equity Futures | Lower of Rs.20 per executed order or 0.05% | Lower of Rs.30 per executed order or 0.10% |
| Currency Futures | Lower of Rs.20 per executed order or 0.05% | Lower of Rs.30 per executed order or 0.10% |
| Commodity Futures | Lower of Rs.20 per executed order or 0.05% | Lower of Rs.30 per executed order or 0.10% |
| Equity Options | Rs.20 per executed order | Rs.30 per executed order |
| Currency Options | Rs.20 per executed order | Rs.30 per executed order |
| Commodity Options | Rs.20 per executed order | Rs.30 per executed order |
3. ICICI Direct 3-in-1 Account
The ICICI Direct 3-in-1 online account allows you to trade in assets such as equity and derivatives on the NSE and BSE (currency & commodity). Other value-added services offered by ICICI include research advising, PMS, and asset management. You can also invest in Mutual Funds, Initial Public Offerings, and Life Insurance using this account. The image below depicts the brokerage charged by ICICI Direct 3-in-1 bank Demat account.
| Trading Type | Brokerage Charges |
| Equity Delivery | 0.55% (including buy and sell) |
| Equity Intraday | 0.275% (the second leg is not charged) |
| Equity Futures | 0.050% plus a flat brokerage of Rs.50 on the second leg |
| Equity Options | Rs.95 per lot plus a flat brokerage of Rs.50 on the second leg |
| Currency / Commodity Futures | Rs.20 per order |
| Currency Options | Rs.20 per order |
4. HDFC Securities 3-in-1 Account
You can trade and invest in a variety of assets, including US stocks, with an HDFC 3-in-1 account. You can also benefit from value-added services such as loans secured by your stocks, bonds, and mutual funds.
The account’s disadvantage is that you must pay Rs.1,999 to use the trading platform “Pro Terminal.” In addition, depending on the type of savings account you have with HDFC Bank, you may be required to maintain a minimum amount. The image below depicts the brokerage charged by HDFC Securities 3-in-1 bank Demat account.
| Segment | Brokerage Charges |
| Equity Delivery Trades | 0.50% (for both buy and sell orders) OR a minimum of Rs.25, or a maximum of 2.5% on transaction value (both buy and sell) |
| Equity Intraday Trades | 0.05% (for both buy and sell orders) OR a minimum of Rs.25, or a maximum of 2.5% on transaction value (both buy and sell) |
| Equity Futures | 0.025% OR a minimum of Rs.25, or a maximum of 2.5% on transaction value (both buy and sell) |
| Equity Options | Higher of 1% of the premium amount or Rs.100 per lot (Both Buy & Sell) |
| Currency Futures | Brokerage of Rs.12 per contract on each side |
| Currency Options | Brokerage of Rs.10 per contract on each side |
| Commodity Futures | 0.020% or minimum Rs.20 per order |
| Commodity Options | Rs.100 per lot |
5. Kotak Trinity 3-in-1 Account
The USP of the Kotak Trinity 3-in-1 account is that it allows you to move any amount of money to your trading account on any given day with no upper restriction. After Market Orders can be placed and will be delivered to stock exchanges when the following trading session begins. However, Kotak Securities charges a Rs.750 account opening fee and requires a 10-day wait to open the Trinity 3-in-1 account. The image below depicts the brokerage charged by Kotak Trinity 3-in-1 bank demat account.
| Segment | Brokerage |
| Equity Delivery | 0.49%, Min 4 paise per share |
| Intraday (both sides) | 0.049%or Rs.21 per executed order, whichever is higher Min 3 paise per share |
| Futures (both sides) | 0.049%Min 3 paise per share subject to a ceiling of 2.5% of the contract value |
| Options | Rs.300 per lot |
Advantages and Disadvantages of 3-in-1 Accounts
| Advantages | Disadvantages |
| Hassle free and fast transaction of funds | The broker charges are high |
| Reduced paperwork | Commodity trading not available |
| No separate trading or SB account needed. | The account opening charges are high |
| Availability of multiple investment avenues such as FD, MF, Shares, etc. | You are needed to maintain a minimum balance in the savings bank account |
Final Word
A 3-in-1 trading account makes it easier to transfer funds from your bank account and trading account. It makes it convenient for investors who want to trade online. A 3-in-1 account also enables you to diligently monitor your investments with all sorts of tools to help you. You can transfer your funds and execute trades within minutes without paying any extra charges.
FAQs
A Demat account can be compared to your regular savings account where you store all your financial properties in a secure manner.
A trading account is an interface that allows you to buy and sell your financial securities kept in your Demat account.
Having a Demat account ensures that all your valuable physical certificates are preserved in an electronic form. Opening a trading account allows you to make easy and on the go selling and purchasing of stocks whenever you want.
Yes, there are annual charges imposed if you have a Demat account and it varies from company to company. Trading accounts do not charge any annual fees.
Some companies allow the opening of a Demat account free of charge, while some may demand a nominal fee starting from 100 INR.
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This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
