Here’s how you can benefit from linking your savings account with demat account.
If you are looking for an investment opportunity in the share market, one thing you need to note is that opening a demat account, a trading account and a savings account are important. You can buy and sell shares via a trading account.
Demat accounts keep the shares in electronic form, removing the need for physical copies. In order to dematerialize (convert to electronic form) your physical share certificates, you need to open a demat account with a DP (depositary participant) that could be a bank, a financial institution or a licensed Securities Exchange Board of India (SEBI) agent. A DP serves as an intermediary between you (investor) and the depository.
Also read: 30 Food Business Ideas with low investment
There are currently two depositories in India, namely the National Securities Depository Limited (NSDL) and the Central Depository Service Limited (CDSL). These depositories shall be responsible for managing shares and securities in a digital way.
To make it easier, a user can connect his or her debit account to the savings account in a seamless transaction of shares. Money from your savings account is automatically debited/credited and shares are credited/debited to your debit account.
Interlinking your savings accounts with your debit account gives you the convenience you need when trading on the stock exchange.
Apart from that, there are several other benefits that investors can benefit by connecting the demat account to the savings account:
- If you connect your debt, savings and trading account, you can easily purchase and sell not only shares but also other financial instruments such as mutual funds, stocks, gold bonds, corporate fixed deposits, etc.
Note: This simple linkage will give you two in one benefit.
- One of the key reasons why one should connect his account and savings account is that they can carry out financial transactions at anytime and anywhere.
You never miss a financial opportunity because you can simply start trading on your mobile, tablet or laptop. This kind of flexibility is a must to understand how volatile stock markets are.
- Further to the above, where stock markets are undergoing dramatic changes, investors should conduct a thorough market analysis instead of hastening the selling or buying of shares.
After you have established and evaluated the market trend, you can simply make trades using your trading account.
- Linking a demat account and a savings account lets you keep track of your transaction. iYou can track your selling and buying and the returns you’ve made.
- Now everything is electronically controlled, so you can monitor your demat, trading and savings account via your smartphone.
And if you have a 3-in-1 account then you don’t even have to juggle between various apps, the official app is enough to allow you to access all your trading details.