A 3-in-1 Demat account rapidly gaining traction with Indian investors, especially those new to stock markets or looking to simplify their set-up. The 3-in-1 Demat account, which is offered by a handful of banks and brokerages, bundles three essential services into a single, integrated unit: a savings account, a trading account, and a demat account, all in one.
This combination eliminates the need to juggle with multiple tasks of moving funds manually across different platforms. Money in your bank account gets routed directly into your trading wallet when a stock is bought. Once the trade is executed, the shares land straight into your demat account with no separate requests, thus ensuring no delays in the process.
What Is 3-in-1 Demat Account?
A 3-in-1 Demat account consist of three financial instruments:
Savings Account: To save, store and transact funds
Trading Account: To execute buy/sell orders in the stock market
Demat Account: To hold securities digitally
Traditionally, these three accounts are opened and operated separately, often across different institutions. That leads to friction. Transfers take hours, sometimes even longer. But with the 3-in-1 format, all three accounts work together in real time. The result is a streamlined experience that eliminates operational lag.
How a 3-in 1 Demat Account Differs from a Regular Demat Set-up
In a conventional scenario, a user typically maintains a bank account with one bank, a trading account with a broker and a demat account with a third party. The entire process of buying stocks involves multiple transfers, approval and confirmation of funds.
However, with a 3-in-1 account, these systems are already linked. Money leaves your savings account automatically when you place a trade. After the transaction, your shares are credited directly to the demat account linked within the same ecosystem.
For retail investors, especially salaried professionals and first-time traders, this tight integration saves not just time, but potential errors and delays, too.
Benefits of a 3-in-1 Demat Account
Here are some of the benefits of a 3-in-1 demat account
Single-window convenience: You are managing banking, trading, and investment in one login.
Less Paperwork: You just need your Permanent Account Number (PAN) and Aadhaar, and a connected mobile number to start with.
Fast-track KYC: Thanks to video verification and e-KYC process, you can have a 3-in-1 demat set-up in less than 24 hours.
No Minimum Balance: Some providers also offer accounts without requiring a minimum balance.
Unlimited Cash Outs: Funds can be transferred freely from connected accounts.
Advantages for Investors
A 3-in-1 demat account provides multiple benefits to investors
Ease of Trade: The real-time connection between savings and trading accounts cuts down execution time. And when markets turn fast, execution speed matters. Instant liquidity ensures you don’t miss the window.
Convenience Of Tracking and Managing Better: Users can access integrated dashboards on mobile apps and desktop platforms to monitor profit and loss, current holdings, pending trades, and available funds in one convenient location.
Long-Term Investments: Investors who are investing for multiple years get compound returns, pay less in transaction fees by buying once and almost never selling, and enjoy the flexibility of zero balance requirements. Some platforms also include long-term portfolio tracking tools and goal-based investments.
What If Something Happens to the Account Holder
The included nomination facility ensures that your next of kin can access the account with no lengthy probate delays or legal uncertainty. Investors can also edit or change nomination details through the app, thus simplifying the process of estate planning.
Who Can Open a 3-in-1 Demat Account
Here are the criteria for the applicants to be eligible for opening a 3-in-1 demat account.
Applicant should be resident of India
Applicant must be 18 years or older of age
Applicant must have a valid PAN card
Applicants must have a mobile number registered with their Aadhaar.
Applicants should also have an existing bank account with active status (ideally the same provider who will provide a 3-in-1 setup)
The KYC verification generally comprises live video proof and a blank sheet to record the signature, as well as ID/address proof submission. For those who already have a bank account with the issuer, the process could be even quicker, as the savings account is already established and the KYC process for the same is already in place.
