Gearing up to become investment-ready for the share market? The first step is to open a Demat account. As of March 2024, there were over 15 crore demat accounts in India. That says a lot about the growing enthusiasm of Indians in trading and investment.
If you are ready to begin your trading journey, a demat account is a must. But that’s just the beginning. Your Demat account benefits go beyond trading.
Read on to learn more about the benefits of integrating financial services like a Demat account and a bank account.
Demat Account Attached With Bank Account
Registering a Demat account with a bank account is a must. However, there is no compulsion to have both trading and bank accounts with the same bank. However, open demat account with a bank where you also have a bank account can provide added advantages like additional services and features. You may also be able to open a free trading account with your regular bank.
Benefits of a Demat Account Linked With a Bank Account
There are manifold benefits of linking your demat account with a bank account. In recent times, integrated financial services like these are proving to be quite helpful. It increases the efficiency of financial tasks with more convenience. Here are some of the many benefits of integrating your demat and bank accounts:
1. Quick cash transfer
As a stock trader, you need quick access to funds for purchasing stocks, especially if you are a day trader. While you can hold stocks and funds in your demat account, you still need quick access to fund transfers. This is why linking your demat account to a bank account is beneficial. You can easily transfer funds without any delay!
2. Protection of securities
Protection for security is what every investor looks for. A bank account offers financial security to linked accounts as well, like a Demat account. So, be it financial transaction details, encryption protocols, or following authentication measures, a bank ensures these protections are extended to the linked Demat account.
3. Easy Management of Accounts
When you have your bank and demat account linked, you can easily manage both accounts. There is no need to manage both accounts separately, checking balance, accessing and transferring funds, etc. Through a single user interface, all these tasks can be performed.
4. Receive Automated Benefits
Demat account transactions can accumulate interest and dividends. Since a Demat account can only facilitate trading activities, these benefits have to be received in the bank account. So, if you have your bank account linked to the Demat account, it becomes easier to receive dividends and interest directly into the bank accounts without any hassle!
5. Additional Features & Services
When a Demat account is linked to a bank account, the user can access various Demat account benefits. It may include investment advisory services, transaction history, research reports, and so on. These services can benefit an investor in the long run and facilitate informed decisions.
6. Instant Funds
Linking your bank and demat accounts gives access to quick funds in times of need. Once you sell a security, you can receive the funds directly in your bank account for instant use
7. Single Interface Monitoring
Integrating your demat account and bank account with the same service provider can be quite helpful. You can access and monitor account statements of your bank & demat accounts and current holdings in your demat account at a single user interface. You need not access different platforms for these details.
8. Internal Information
Linking demat and bank accounts provides you with various internal information. Such information can be beneficial for the upcoming trade plans of the investor. Your bank may assist you by suggesting which stocks to buy and sell so you can make the best choice.
In Closing
The pathway to achieving financial goals, including stock trading and investment, requires a streamlined process. One of these elements is linking a demat account to a bank account. It offers benefits like swift transactions, quick access to required funds, high-level protection to stock securities, and so on.
Integrated financial services like these can save time and effort so you can focus on your bigger financial goals! If you are new to a demat account, make sure to get your account linked to a bank account immediately!
