5 Things You Need to Know About A 3-In-1 Account
To be able to trade in the Indian stock market, it is mandatory to have three accounts: a bank account, a trading account and a demat account. While the bank account is for the funds used for trading, the demat account stores the shares and securities that you buy or own in an electronic format, and the trading account is the platform that allows you to execute your trades. You have the option to open each of these accounts separately or open a single three-in-one account that combines trading, demat and banking facilities.
Here are five things you need to know about a three-in-one account
- A 3-in-1 account comprises of three separate accounts offered by a few brokerage firm. It features a bank account (where your money is parked), a trading account (a broker’s platform which allows you to trade in various financial instruments including equity, futures and options, etc.) and a demat account, which holds your shares and other assets in the dematerialised or digital format.
- A 3-in-1 account allows seamless, integrated transactions between these three accounts. When you buy shares through the trading account, the money gets debited from your bank account while the shares purchased are credited to your demat account. Similarly, when you sell shares through your trading account, the shares are debited from your demat account and the money you make is credited to your bank account.
- The charges associated with 3-in-1 accounts differ from one brokerage firm to another. However, like all brokerage firms, transaction charges are levied on every transaction conducted through the account, based on the type of brokerage plan you opt for.
- A 3-in-1 account allows you to invest in a wide range of instruments, including equities, IPOs, mutual funds, commodities, currency, futures & options (F&O), insurance, NPS, tax services & several other financial services
- The savings account linked to the 3-in-1 account may be used as a regular bank account as well. As such, you can withdraw funds for your personal use, whenever you need it.
ICICI Direct’s 3-in-1 trading account is one of the oldest and most popular 3-in-1 service, backed by ICICI Securities strong network across India. It has built a reputation for transparency and excellent support services.
Disclaimer: ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon.