A three-in-one demat account allows you to hold securities (demat account), purchase and sell them (trading account), and keep your own money (savings account). As a result, brokerage firms that are also part of a banking group provide three-in-one demat accounts. The 3-in-1 account is made up of three independent accounts: a Bank Account (a regular bank account where your money is kept), a Trading Account (a share broker account that allows you to trade in equity, F&O, and other segments), and a Demat Account (it holds the equity shares purchased by you).
3-in-1 Account = Bank Account + Trading Account + Demat Account
If you trade on a daily basis or invest in stocks on a regular basis, you will pay a significant amount in brokerage. Only if you make a few stock transactions during the year are 3-in-1 bank accounts appropriate.
Rather, you can register a 3-in-1 account with stockbrokers like Upstox and Zerodha, who work with banks to offer 3-in-1 accounts. This way, you get all of the advantages of a 3-in-1 account while still saving money on brokerage.
It might be difficult to open and manage various sorts of accounts with various companies for various purposes.
For example, if you want to open a demat account, you must first complete the necessary paperwork, then link your bank account to the demat account, and then create separate account credentials to gain access to the account.
If you have a 3-in-1 account, you can move money seamlessly between your bank account and trading account. Through their subsidiaries, banks provide stock brokerage services.
On the other hand, banks impose exorbitant brokerage fees for intraday and delivery on a three-in-one Demat account.
If you trade on a daily basis or invest in stocks on a regular basis, you will pay a significant amount in brokerage. Only if you make a few stock transactions during the year are 3-in-1 bank accounts appropriate.
Rather, you can register a 3-in-1 account with stockbrokers like Upstox and Zerodha, who work with banks to offer 3-in-1 accounts. This way, you get all of the advantages of a 3-in-1 account while still saving money on brokerage.
Here are five things to consider before opening a three-in-one account.
• A 3-in-1 account combines three separate accounts offered by a few brokerage firms into one convenient package. It includes a bank account (where your money is kept), a trading account (a broker’s platform that allows you to trade in a variety of financial instruments such as equity, futures, and options, among others), and a demat account (where your shares and other assets are held in a dematerialized or digital format).
• A three-in-one account allows transactions across these three accounts to be seamless and linked. When you purchase shares through a trading account, the funds are deducted from your bank account, and the shares are credited to your demat account. When you sell stocks using your trading account, the shares are deducted from your demat account and the proceeds are credited to your bank account.
• The fees associated with 3-in-1 accounts vary depending on the brokerage business. Transaction charges are imposed on every transaction done through the account, as they are with all brokerage firms, and are based on the type of brokerage plan you choose.
• A 3-in-1 account allows you to invest in shares, IPOs, mutual funds, commodities, currency, futures & options (F&O), insurance, NPS, tax services, and a variety of other financial services.
• The 3-in-1 account’s connected savings account can also be utilised as a standard bank account. As a result, if you need money, you can withdraw it for personal use. The convenience of a 3-in-1 account is that transactions across these three accounts are smooth. This account also has a wide selection of investing options.
When an account holder purchases shares through a trading account, the funds are automatically deducted from their savings account and the shares are automatically credited to their demat account. When shares are sold through a trading account, the money is deposited to a bank account, and the shares are withdrawn from a demat account in the same way. The money that remains in your bank account can be utilised in the same way that any other bank account can (i.e. you can withdraw that using your debit card).
While the cost of trading is often high with organisations that provide 3-in-1 accounts, the hassle-free investment and integrated financial solution offers distinct advantages. These accounts are ideal for consumers who plan to invest in the stock market for a long time or who are willing to pay a higher brokerage fee in exchange for a more convenient service.
This type of account is highly suggested if you are a stock market newcomer or an investor (rather than a regular trader).
Other advantages of a three-in-one account include:
1. Investment and trading in Equity
2. Investment in IPO’s
3. Online Mutual Funds investment
4. Derivative Trading (Trading in Futures & Options or F&O)
5. Saving Account can be used as normal bank account
6. Insurance, NPS, Tax Services & many more financial services
ICICI Bank’s 3-in-1 trading account is the bank’s oldest and most popular service. This account appeals to me because of their extensive branch network. Another well-known and excellent service provider is HDFC 3-in-1 trading account. SBI three-in-one accounts and ordinary chartered three-in-one accounts are also effective investment possibilities.
Broker Pages
Please visit the broker page at the link below to learn more about the services provided by these companies, as well as their reviews, complaints, and ratings.
1. ICICI 3 in 1 Account Review
2. SBI 3 in 1 Account Review
3. HDFC 3 in 1 Account Review
4. Kotak 3 in 1 Account Review
5. IDBI three in one Account Review
6. Axis Bank 3-in-1 Account Review
Note: If you already have a savings or demat account, you can link it to your trading account to make it a three-in-one trading account.
ICICI direct Special Offers
ICICIdirect Neo Plan (Discount Brokerage)
Open a Neo Plan 3-in-1 account for:
• Free Account Opening • Brokerage-Free Equity Futures trading
• Flat Rs. 20 per trade brokerage in Options, Currency F&O and Commodity futures in BSE, NSE and MCX
• Free trading tips
• Get funds in your bank account in just 30 minutes of selling stocks
Frequently Asked Questions:
1. What does it mean to have a 3-in-1 account?
These are some of the questions that people who are new to trading and want to register a trading account typically ask:
• What exactly is a three-in-one account?
• What exactly is a two-in-one account?
• What’s the difference between a three-in-one and a two-in-one account?
• Which is better: a three-in-one account or a two-in-one account?
• Which bank offers the finest three-in-one account?
You have two options for opening a trading account to trade stocks, derivatives, IPOs, and other securities: a 2-in-1 account or a 3-in-1 account.
A 3-in-1 account combines a bank savings account, a demat account with either the NSDL or CDSL central depositories, and a trading account for buying and selling various financial assets. A broker opens all of the accounts together. Broking organisations that are part of a banking group, such as HDFC Securities, ICICI direct, Kotak Securities, and Axis Securities, typically provide 3-in-1 accounts.
2. What is a dual-purpose account?
Only a demat account and a trading account are included in a 2-in-1 account. This account does not have a bank account associated with it. A non-banking brokerage firm such as Zerodha, Sharekhan, Indiabulls, and others typically provide a 2-in-1 account.
3. How do you tell the difference between a 3-in-1 and a 2-in-1 account?
The inclusion of a bank account in the package and the convenience it provides to a trader are the only differences between a 3-in-1 account and a 2-in-1 account. Everything else stays the same. Both the trading and demat accounts provide the same services.
4. Is it better to have a 3-in-1 or 2-in-1 account?
A 3-in-1 account is superior than a 2-in-1 account in terms of trading convenience. To trade a financial item, you’ll need three things:
• Funds or Money
• A trading account that allows you to use a trading platform (web-based, installable platform, or mobile app) to buy and sell securities.
• A demat account with one of the central depositories, such as CSDL (Central Depository Services Ltd) or NSDL (National Securities Depository Limited), where your holdings’ certificates are stored in dematerialized or electronic form.
If you open a 3-in-1 account, moving money between your bank and trading account is simple and quick. The monies are transferred in real time. If you discover a trading opportunity but don’t have enough cash in your trading account, you can instantly transfer funds and complete your trade.
You must move funds from another bank account to your trading account if you open a 2-in-1 account. Depending on whether you’re using IMPS, NEFT, or a check, this transfer can take anywhere from a few hours to a day. A fee for fund transfer may be charged by your broker or bank.
As a result, the decision between a 2-in-1 account and a 3-in-1 account comes down to personal preference.
5. What is the finest bank for a three-in-one account?
All major banks with a brokerage company in their group, including as SBI, ICICI, Axis, Kotak, HDFC, and others, provide 3-in-1 accounts. The majority of 3-in-1 accounts have comparable features. However, there are a few things to think about when selecting the best 3-in-1 account:
• Minimum Balance Requirements- Is there a minimum balance requirement for the 3-in-1 account? Is it required to have a balance on a monthly, quarterly, or yearly basis? The savings account, in most situations, is a zero balance account that does not require any balance to be maintained. Some banks, on the other hand, impose a minimum trading activity requirement on your trading account. Your bank account may be switched from a zero balance to a minimal balance account if you do not engage in the required trading activity.
• Brokerage Fees- Brokerage fees differ from one broker to the next. So, before you choose your 3-in-1 account, examine the brokerage fees.
• Segments: Not all brokerage firms offer trading in all areas, such as stock, derivatives, currency, and commodities. As a result, double-check that the bank where you’re opening a 3-in-1 account allows you to trade in segments of your choosing.
• Trading facilities: Trading tools, platform features, and other trading support provided by brokers are referred to as trading facilities. Before selecting the best 3-in-1 account, you should think about the broker’s quality trading tools, platform features, research counsel, training recommendations, and so on.
