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All you need to know about a 3 in 1 Account

This article explores the components, features, working, benefits, and plans of a 3 in 1 account offered by various leading banks.

Have you ever wanted to invest in stocks but didn’t know how? Does the world of speculation and trading excite you? Do you want to use your market knowledge to multiply your money? Look no further. This article will tell you where to begin.

Modern day banking has advanced tremendously when compared to traditional banking. Earlier it was a hassle to go trade physically, and hold certificates of the shares bought. With the emergence of electronic systems and the 3 in 1 account, those worries have disappeared, and online trading has amassed ground.

What is a 3 in 1 account?

A 3 in 1 account offers you the benefits of 3 separate accounts. These accounts include a Savings Bank Account, a Demat Account, and a Trading Account. All 3 accounts can be opened at one go, using a single account opening form.


Purpose

A 3 in 1 account is used for the purpose of Share Market Trading. You can also use this account to invest in Mutual Funds, Derivatives and IPOs (Initial Public Offerings).


What is a Savings Account?

A savings account is one of the most popular forms of deposits. It offers a nominal interest rate to customers. Most banks have a minimum balance requirement that needs to be maintained. There is usually a cap on the maximum number of transactions made through a savings account. This is a highly liquid form of asset.

What is a Demat Account?

A demat or dematerialised account is an account which allows customers to hold shares and securities in an electronic format. It facilitates easy trade for users, as shares which are bought are held in the Demat Account. It also holds additional investments made by a customer in the form of mutual funds, government securities, bonds, among others.

What is a Trading Account?

A trading account is used to buy and sell equity shares on the stock market. Earlier, the stock exchange functioned on the open outcry system. But after the adoption of the electronic system, Online Trading gained popularity. Each trading account has a unique trading ID. A trading account acts as a link between a user’s demat account and bank account.

How does it work?

Buying: When an account holder buys shares through the trading account, the money automatically gets debited from their bank account, and shares are then subsequently credited to their demat account.

Selling: When an account holder sells shares through the trading account, the money automatically gets credited to their bank account, and the shares are then subsequently debited from their demat account.

The savings account can be used normally to make transactions, when not trading.

How to open a 3-in-1 account?

You can open a 3-in-1 account at the bank or online. All 3 accounts can be opened at one go, using a single account opening form. You just need to produce the following documents:

  • Address Proof
  • PAN (Permanent Account Number) Card
  • 2 passport-sized colour photographs
  • Aadhaar Card (if online)

Depending on the bank’s policy, you may be required to maintain a minimum balance in your savings account.


Factors to consider while opening a 3-in-1 account

  1. Minimum Balance Requirement: One should check the minimum balance requirement of the savings account of the chosen bank. The differs from bank to bank. Customers must see if you are required to maintain minimum balance on a monthly, quarterly or yearly basis.

  2. Brokerage Charges: These charges vary from broker to broker. So, the customers must carefully study the brokerage charges before choosing a bank to open their 3-in-1 account.

  3. Segments: Not all brokerage companies facilitate trading in all segments like equity, derivatives, currency and commodities, etc. So, a customer must ensure that the chosen brokerage firm facilitates trading of segments that the customer is interested in.

  4. Trading Facilities: This refers to the tools, platforms and other trading assistance offered to a customer by the broker. The quality of training tools, research advice and training tips must be assessed by the customer before opening a 3-in-1 account.


Benefits of a 3-in-1 Account

  • Hassle-free Trading: Allows customer to trade online with ease
  • Investment and Trading in Equity: Allows customer to buy equity shares and make investments with the help of their demat account and trading account
  • Investment in IPOs: Customers can also invest in Initial Public Offerings (IPOs) of companies
  • Online Mutual Funds Investment: Investments can be made online in mutual funds
  • Derivative Trading- Allows trading in F&O (Futures and Options)
  • Savings account can be used as a normal bank account
  • Customers are offered various Financial Services like Insurance, NPS (National Pension System), and other tax services


3-in-1 Accounts of Various Banks

KOTAK MAHINDRA BANK

Kotak Securities is a subsidiary of Kotak Mahindra Bank. They are corporate members with Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). They are also a Depository Participant (DP) with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL).

Kotak Securities offers a 3-in-1 Account which allows the investor to open a Trading Account and Demat Account with Kotak Securities, and a Savings Account with Kotak Mahindra Bank.

Trade Platforms available through Kotak Securities:

  1. Website Based Trading- Stock trading website that can be accessed through any popular web browser
  2. Trading Terminals (KEATProX and FASTLANE)- These applications give you benefits of website-based trading
  3. Mobile Stock Trading- High speed mobile-based application to trade
  4. Branch Advisory and Call & Trade- Kotak offers trading advice at branches and through call centres

Trading Brokerages:

  1. Fixed Brokerage Plan
  2. Dynamic Brokerage Plan
  3. Free Intraday Trading (FIT)


ICICI BANK

ICICI Securities offers ICICIdirect, which is a retail trading and investment service. ICICI Securities is the largest retail stock broker firm in India. ICICIDirect.com is the flagship website of ICICI, which offers a wide range of investment products such as: Online Equity Trading, Derivatives Trading, Mutual Fund and IPO, Bonds, among several others.

ICICIDirect’s Trading Platforms:

  1. Share Trading Account- Website based training primarily to buy and sell stocks at BSE and NSE
  2. Trade Racer- Trading platform which provides an investor with live streaming quotes and research calls

Brokerage Plan:

  1. I-Secure Plan (Flat Brokerage Plan)
  2. I-Saver Plan (Variable Brokerage Plan)


HDFC BANK

HDFC Bank’s Equity Trading Company is called HDFC Securities (HDFCsec). HDFC Securities provides both trading on phone, as well as online trading. HDFC Securities’ Trading Account has a unique feature that integrates the HDFC Securities Trading Account with a customer’s existing Bank Savings Account and existing Demat Account.

HDFC Securities’ trading software includes a trading terminal, browser-based trading website, and mobile trading app.

Features of HDFC Securities:

  1. Seamless Transactions- By integrating accounts, ensure ease to the user
  2. Speed- Orders placed electronically, get processed immediately
  3. No manipulation- Email confirmation is sent when order is executed
  4. Safety and Security- High level of security is offered
  5. Dedicated and Separate Contact Numbers- For trading over phone, as well as for customer care


STATE BANK OF INDIA

SBICAP Securities Ltd (SSL) is a 100% subsidiary of SBI Capital Markets Ltd. SBICAP offers various services like Institution Equity, Retail Equity, Derivatives, Broking, Depository Participant Services and E-Broking. This portal allows both Indian Residents and Non-Resident Indians (NRIs) to invest in Equity, Derivatives, Mutual Funds and IPOs via its online channel.

Features of SBICAP Securities Limited:

  1. Low bandwidth option for anywhere access
  2. Instant fund and share transfer facility
  3. 24/7 access to the back office


AXIS BANK

Axis Securities is a subsidiary company of Axis Bank Ltd. Axis Direct is the flagship brand of Axis Securities Ltd offering simplified investment solutions to retail customers. Axis Securities offers a single account to its customers to invest in Equities, Mutual Funds, SIPs, IPOs, Derivatives, Bonds, NCDs, ETFs, and Company Fixed Deposits.

Axis Direct’s Trading Platforms:

  1. Direct Trade- Trading terminal suitable for high frequency traders
  2. Swift Trade- Java applet-based trading program
  3. Mobile Trading- Allows trading of equity and derivatives through smart phone
  4. Axis Direct Lite- Low bandwidth, user-friendly trading platform

Axis Direct offers 3 types of Brokerage Plans:

  1. Fixed Brokerage Plan
  2. Investment Plus Plan
  3. Now or Never Plan

In conclusion, we can say that the 3 in 1 account has, by all accords, revolutionized the banking sector, and completely changed how trading is done. It has facilitated seamless transactions, and quick execution of orders. With options like Kotak Securities, ICICIdirect, HDFC Securities, SBICAP Securities Limited (SSL), and Axis Direct, among countless others- customers today have a rich pool of options to choose from and learn how to invest money wisely.

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Interest Rate
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