As you may know, Demat and trading accounts are essential for trading in the stock market. According to reports from NSDL and CDSL, 2024 recorded a significant 33% spike in the number of new Demat accounts opened compared to 2023, making it a total of 185.3 million. Apart from these, there is another type of account named a 3-in-1 account. It integrates Demat, trading, and saving accounts, allowing you to seamlessly manage your banking, investment, and trading needs under a single platform.
This blog will give you a comprehensive detail about the integrated trading account. Stay tuned to learn more!
What is a 3-in-1 Account?
A 3-in-1 account integrates a Demat account, a savings account, and a trading account into one. A Demat account stores your securities like stocks, bonds, mutual funds, and other investments. Trading accounts allow investors to access the stock market to buy and sell securities, while funds are held in savings accounts for the transactions. For all these purposes, you have to open separate accounts, requiring you to contact multiple brokers and banks. Here, transferring funds from a savings account to a trading account is vital to carry out a transaction. It takes hours or even days to complete this process. However, an integrated trading account makes this process quick and easy!
You can easily move funds from your savings to a trading account when buying the shares. Within your Demat account, the shares are stored safely. This is a streamlined procedure that helps in saving your time and energy by eliminating unnecessary manual work.
Features of 3-in-1 Account
The following are the key features of an integrated trading account:
- Integrated accounts: A 3-in-1 account allows you to manage your Demat, trading, and savings accounts all in one platform conveniently. This provides a smooth transaction experience among these accounts.
- Minimal paperwork: You can easily complete the account opening process as it requires minimum paperwork. Only PAN and Aadhaar cards are required.
- E-KYC facility: With the E-KYC facility, the account activation process gets streamlined, ensuring speed and efficiency.
- Swift activation: After completing the required KYC procedure, your Demat and trading accounts will be activated within one day.
| Did you know? There are more than 60 stock exchanges in the world! |
Benefits of a 3-in-1 Demat Account
There are multiple advantages to a 3-in-1 account, let’s understand them.
Simple and Convenient
The procedure for opening a new Demat and trading account has become more efficient, making it easier for traders. Integrating three accounts gives you a streamlined package.
- No need to manage separate accounts for holding securities, conducting transactions, and handling funds.
- Transferring funds between savings and trading accounts occurs automatically without any manual effort, making it quick and hassle-free.
- By logging in, you can monitor your securities, buy or sell them, and manage funds without wasting time and effort.
Low-Cost Trading
A 3-in-1 Demat account offers the advantage of competitive brokerage fees, especially when using a bank with an integrated solution.
- Many banks and brokers offer discounted brokerage rates and lower transaction costs if you use an integrated trading account rather than an independent one.
- Paperwork and transaction costs are reduced because everything is conducted over a single platform, which minimises the need for expensive third-party services.
Live Monitoring
You get real-time updates on your investments and transactions. This gives complete control and visibility over your portfolio.
- Many platforms provide dashboards that give live updates on your investments, current market value, and recent transaction records.
- Tracking makes it easy to get updates on your profit or loss, helping you make better decisions based on real-time data.
- You receive constant alerts and notifications to stay updated about crucial ongoing events, such as corporate announcements, stock price movements, or dividends.
Streamlined Transactions
A 3-in-1 account streamlines the trading process, offering a smooth user experience.
- When you purchase or sell shares, the system automatically debits or credits funds to your linked savings account, removing the need for manual transfers.
- Securities get automatically credited to or debited from your Demat account as per the transactions, making the process secure and efficient.
- Integration of all 3 accounts, Demat, savings, and trading accounts, eliminates the delays in fund transfer from a bank account to a trading account and allows you to quickly act on ongoing trades in the market.
Safety and Security
An integrated trading account is digital and ensures that your securities are safely stored, reducing the risk of loss, theft, or damage associated with physical certificates.
- Many platforms record all the transactions and holdings digitally. Also, many others offer two-factor authentication and security measures to protect the account.
- Dividends, bonuses, or splits are automatically credited to the system, ensuring you receive all the benefits without missing out.
How to Open a 3-in-1 Account?
Opening a 3-in-1 account is an easy and convenient procedure that can be done online. You need to follow the steps given below:
- Go to the website of the bank or broker you are interested in to open the account.
- Select the option of a 3-in-1 account.
- Provide your mobile number and PAN number.
- Provide your Aadhaar number for OTP verification.
- Complete the online application form as directed.
- Schedule an appointment for KYC.
- After completing KYC, you can expect to receive the account details soon.
Remember, to open a 3-in-1 account, you must meet the defined eligibility criteria. You must be 18 years or older and a resident of India. Also, ensuring that your Aadhaar card is linked to your mobile number for Aadhaar OTP-based KYC verification is essential. The original Permanent Account Number (PAN) is required for video KYC.
Conclusion
With the emergence of the 3-in-1 Demat account, the trading experience has become smooth for customers. Holding securities in a Demat account, transacting through a trading account, and keeping funds in a savings account have all become streamlined with a single account. Also, an integrated trading account offers many benefits, and the biggest advantage is a seamless user experience while processing transactions.
If you are looking forward to starting your investment journey, Torus Digital is your go-to platform! Experience a new-generation, technology-led solution for all your investment needs with our 3 in 1 account app online. Start investing today!
