Best 3-in-1 demat account in India 2024

Best 3-in-1 demat account in India

Before I list down top brokers and banks to open best 3-in-1 demat account in India, let me in brief explain you what is a 3-in-1 demat account. Also don’t forget to read my conclusion at the end of this post.

There was no concept of 3-in-1 demat account before year 2006. It was only Trading+demat account before that.

After that banks also stepped into broking business, they integrated their savings bank account with Trading and Demat account.

If you dont know what is the difference between a demat account and a trading account, i recommend you read this article in which I explained the concept in detail.

What is a 3-in-1 demat account?

3-in-1 demat account is an account offered usually by banks recognised by Reserve Bank of India in which 3 types of accounts namely, Savings bank account (SB account), Trading Account and Demat account are integrated together.

Normally, the account provided by reputed stock brokers of India has only trading and demat account integrated together. Bank account is linked to trading account but it is not integrated. (it is called 2-in-1 demat account)

If one sells shares, in 2-in-1 demat account the funds are credited to trading account. After this, you have to place request with broker to transfer the funds to receive it at the SB account linked with trading account.

But in case of 3-in-1 demat account, you don’t have to place any request with broker. The funds will reflect automatically in your savings account.

Same is the case while buying the shares also. One need to transfer funds from SB account to trading account first in case of 2-in-1 demat account. While it is not required in 3-in-1 demat account.

Particularly for beginners in stock markets, 3-in-1 demat account are beneficial and are good starting point.

Advantages and Disadvantages of 3-in-1 demat account

Below are some Pros and Cons of opening 3-in-1 demat account.

Pros

Quick and seamless transfer of funds
Less paperwork. No need to open trading and SB account seperately
Multiple investment venues like FDs and Bonds etc

Cons

Higher brokerage charges
Higher Annual Maintenance Charges (AMC) and account opening charges
Required to maintain minimum average balance

Which is the Best 3-in-1 Demat account in India 2024?

Here is the list of best 3-in-1 demat accounts in India,

Zerodha 3-in-1 demat account (with IDFC First Bank)
Upstox 3-in-1 demat account (with IndusInd bank)
ICICI Direct from ICICI bank
HDFC Securities from HDFC bank
SBI Cap securities from SBI bank
AxisDirect from Axis bank
Kotak Securities from Kotak bank

Now you may be wondering why there is Zerodha and Upstox are present in this list as they are not banks.

I’m including them for those who are interested in saving brokerage charges yet enjoy all the benefits of 3in1 demat account.

Now, how much brokerage can be saved? Let us check the below examples.

For Investor:

Let us assume are planing to invest Rs 10 Lakh. With 0.55% brokerage of ICICI Direct, you have to shell out Rs5,500 in brokerage itself where as you pay nil in case of Zerodha (Investments are free at Zerodha).

Hence there will be 100% savings in brokerage charges when compared to brokers like ICICI Direct.

For Trader:

Now let us see for intraday and Futures traders, how much can be saved.

Let us assume you buy Rs 10lakh and sell 10lakh worth of shares daily. That means in around 20 trading days of month it will be 400 lakhs.

ICICI Direct charges 0.0275% hence the brokerage charges per month is Rs400Lakh * 0.0275% which is Rs 11,000.

So yearly it would be,

Rs11,000 * 12 months = Rs 1,32,000

Now Zerodha/Upstox charge Rs 20/trade for intraday. In Zerodha, brokerage is not based on trade value. For each order they charge Rs20 irrespective of trade value.

Hence per day it would be Rs 40 (Rs20 for buy and Rs20 for sell) and for each month it would be 20* Rs40 = Rs 800

So per year it is Rs 800 * 12 months = Rs 9,600

Hence, traders can save more than 90% of brokerage and indirectly add to their profit

1) Zerodha 3-in-1 demat account

Zerodha is the first discount broker of India. With head quarter at Bangalore, they have partner office across India.

They started their operation in year 2010, but now overtaken likes of ICICI Direct and HDFC securities to become biggest stock broker of India.

Read : Zerodha Review : India’s largest stock broker

Zerodha has collaboration with IDFC First bank to open 3-in-1 demat account.

Once opened, the account will work exactly like any other 3-in-1 demat account offered by banks like ICICI bank. Funds are transferred seamlessly.

With this one can enjoy both low brokerage and other benefits of integrated demat account.

Below is the brokerage charges of Zerodha.

There is no special procedure to open 3-in-1 demat account with them. One need to open normal Zerodha account as usual and then request to link Zerodha account with IDFC First bank. Once linked, it is as good as a 3-in-1 demat account.

Please read this step by step procedure to open Zerodha account online. Account can be opened completely online within 20 minutes and no paperwork.

If you don’t have IDFC First bank account, they will assist to in opening account. Please use below button to provide your details and Zerodha representative will assist in completing all formalities.

2) Upstox IndusStox 3-in-1 Demat account

Upstox is secong largest discount stock broker in India after Zerodha based out of Mumbai. Earlier they were known as RKSV Securities.

Upstox has tie up with IndusInd bank to provide 3-in-1 demat account. One can also choose not to open 3-in-1 account and open only trading account and then link to bank of his/her own choice.

Read : Upstox Review – Brokerage Charges; Trading Platforms

Also Read : Zerodha Vs Upstox : Who is better?

Brokerage structure is same as that of Zerodha and there is not much difference between them.

Some of the other benefits you would get from IndusStox demat account:

No need to maintain minimum balance in Savings bank account
No demat account opening charges
Zero brokerage on delivery trades
Rs20/trade for all other trades
Customizable accounts number for example your birth date or anniversary

3) ICICI Direct 3-in-1 Demat Account from ICICI Bank

ICICI Direct is brokerage arm of ICICI Bank which is one of the reputed bank of India. ICICIDIrect has highest number of customers in the category of the banks which offer 3 in 1 demat account.

ICICI Direct was pioneer in popularizing online trading of shares in 2000s, before that transaction used to happen in physical form.

Probably, ICICI Direct is the best bank to open demat account in India as they are the most trusted private sector bank of India.

Read : ICICI Direct review and its offerings

Also Read : ICICI Direct Vs Zerodha (Side by side comparison)

ICICI Direct offers whole gamut of service which include Equities, Derivatives, Currency trading, Insurance, FDs and mutual funds.

But commodity trading is not offered by ICICI Direct.

However, the brokerage charge is very high at ICICI Direct. Making profit in intraday trading with their high fees is very tough.

If you are wondering which bank in India provides the best demat account, you can consider ICICI Bank demat account.

Please check out below the brokerage charges of ICICI Direct.

4) HDFC Securities 3-in-1 Demat Account from HDFC Bank

HDFC bank is biggest private sector bank of India. Through HDFC securities, they provide 3-in-1 demat account.

With this, the seamless transfer of funds between trading and bank account is possible without much of dependency.

Read : HDFC Securities review

However, the brokerage charge is very high at HDFC Securities. Making profit in intraday trading with their high fees is very tough.

They service both retail and institutional investors through multiple investment options.

Below table shows brokerage charges of HDFC Securities

5) SBI Cap Securities 3-in-1 Demat Account from SBI Bank

SBICAP Securities Ltd (SSL) is the broking arm of the State Bank Group and a wholly owned subsidiary of SBI Capital Markets Ltd. SSL commenced operations in the first quarter of financial year of 2006-2007 with a view to providing primary and secondary capital market access to investors.

But as you know the SBI bank is with us for decades and some of the senior citizens still swear by nationalized banks so they normally prefer to open the demat account with these banks.

6) Axis Direct 3-in-1 Demat Account from Axis Bank

AxisDirect began their operation in year 2005. They are the brokerage arm of Axis Bank.

Because of the tough competition from discount broker they have reduced their brokerage charges.

Read : AxisDirect Brokerage review

However to avail the lower rates, there is a condition which states that it is required to maintain minimum quarterly balance of Rs75,000 in savings bank account.

Below is the brokerage plan of AxisDirect,

7) Kotak Securities 3-in-1 Demat Account from Kotak Bank

Kotak Mahindra bank is the promoter of Kotak Securities.

They call it by name of Trinity account. Apart from broking, they also offer service in other segments like portfolio management, insurance etc.

Read : Kotak Securities Review

Kotak Securities send SMS and research reports on economy, companies which they feel have good prospects as per current scenario etc.

Below are the brokerage charges of Kotak Securities,

Best Banks to open 3-in-1 demat account – Final thoughts

In my opinion 3-in-1 demat account offer good flexibility when it comes to movement of funds. The funds are reflected immediately (i.e after 2 days (T+2 days) if you sell shares) without placing withdrawal request with the broker.

But nowadays, even with 2-in-1 demat account brokers, the funds are credited to linked bank account within 24 hours of placing request. So, I feel it is not worth paying too much brokerage for 3-in-1 demat account only for this sole reason.

Also, brokerage is not main business of banks. But broking is the bread and butter of non-bank brokers. Hence, we can expect better service from non-bank brokers.

And now with Zerodha and Upstox providing 3-in-1 demat account, long standing demad of investors is fulfilled. One can avail all the facility that a 3in1 demat account provides and also lowest brokerage (Zero infact) charges.

Hence I believe, the demat account provided by these discount brokers can be considered as best 3-in-1 demat account in India. Please let me know your views.

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