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What is a Demat & Trading and savings account ?
Accounts needed for stock market participation
In order to participate in stock market, three accounts needed to be working, though it is not a complicated process to open these account you can open the Trading and Demat account using a broker but the savings account is open through a bank
Demat, Trading's, Savings account
Demat account for electronically storing the buyed stocks, Trading account for storing the money you need for buying certain stocks, in order to buy stock you need to pay money for so the money is stored in the trading account savings account, every one knows about the savings account the most important account in the life of a man ,We transfer's the amount we need to buy stocks to the trading account
Fund flow through these accounts
The money we have in our savings account is transferred to the trading account this account does not used for fund transfer to your friends it does not have a google pay or debit card the money we transfer to trading account can only be used to buy stocks from the stock market and the buyed stocks are stored in the Demat account Demat and trading account can be created using our brokers like, up stocks as the community develops these tree account are now available as one that is 3 in 1 account, the brokers ties up with certain banks for the 3 in 1 account
Upstox provide 3 in 1 account being tie up with the Induslnd bank
What is a 3 in 1 account ?
Normally the trading and Demat account is provided by the broker and the savings account is provided by bank, because of these two ownership some problem arises. so the ownership of these three account is combiner under one bank and broker is merged and making the operation accurately and precisely is called the 3 in 1 account
The Induslnd bank provide you a savings account and you can decide its account number the condition is only to make it a 10 digit account number and there should be a special connection between the savings account and trading account called a smart connection
Advantages of 3-in-1 account
1, The major advantage is better and efficient fund transfer between the savings account and the trading account, funds in the trading account can be allocated for trading purposes, the we don't need to transfer money from savings account to the trading account again and again,
2, The trading account gives you no interest for the funds in it, but in this case you get interest from the bank and also can use it to buy stocks, In a normal case this not happening
3, We get a zero balance saving account
4, Titanium debit card
5, Personalized bank account number
6, Other banks savings account can also be linked to the trading account
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