What are the benefits of opting for a 3 in 1 trading account?

A 3 in 1 trading account also called a 3 in 1 Demat account. It is an account where you can buy and sell shares, you can hold shares and you can allocate and receive money. Normally, a bank account allocates and receives money while a Demat account holds shares, and a trading account is responsible for buying and selling shares. There are several reasons why you should opt for a 3 in 1 trading account as opposed to the normal 3 separate accounts.

1. Less paperwork

Opening 3 separate accounts will have significantly more paperwork and therefore, significantly more hassles as compared to the 3 in 1 trading account or the 3 in 1 Demat account. This is a great advantage and should not be overlooked because it can be overemphasized that a significant amount of paperwork has to be done with 3 separate accounts.

2. Quicker transfer of funds

This is because sometimes you will have to log into two different accounts on two different bank websites to complete the transaction. This is not the case with a 3 in 1 trading account. Therefore, please use a 3 in 1 trading account if you need to transfer funds quickly.

3. Safer transfer of funds

Using one account for the transfer of funds not only saves your time but improves your security as now there are fewer accounts to take care of and to make sure they are not hacked.

4. Lesser chances of the bank making a mistake

Even though you may say this is the banks problem, it is your loss if the funds are not transferred accurately. Therefore, you must make sure that you do make use of the 3 in 1 trading account. It is easier for the bank because your 3 in 1 trading account can be linked to your savings account.

5. Banks give advantages

Banks give several advantages to consumers who use 3 in 1 trading accounts including the fact that a diversified range of assets is available to invest in including stocks, mutual funds, bonds, debentures, and company fixed deposits. Another advantage banks give to consumers who use 3 in 1 trading accounts are that global research tools like stock comparisons are used.

These are just some of many advantages of a 3 in 1 trading account. It is crucial that you realize that you can do a lot with a 3 in 1 trading account which cannot be done with 3 separate accounts including advantages not listed in this article. Therefore, it is highly recommended to get a 3 in 1 trading account.

What happens when you do not use your demat account for a long time?

In the previous decades, purchasing and selling equity would have been an irksome job. This was especially difficult without an electronic trading platform. In the absence of this feature, share certificated would have been held in physical form. This was expected to be preserved in a safe condition so that the owner can claim proof of ownership in a company.

But has the electronic trading platforms have replaced the traditional systems, holding physical shares have become a thing of the past. However, there is still the issue of handling these share certificates in the current trend. With the current Demat account, your shares will be dematerialized into electronic shares, and stored in this account.

While initially, certain individuals would open a Demat account with great enthusiasm, which falters after some time. This can occur when individuals have open this Demat account to sell off old shares held in physical form or to apply for the initial public offerings. For those who have held convertible debentures in the past would be in a generation of 60s or 70s. For whatever reason, these individuals may have sold off their shares and yet haven’t closed down the Demat account. Likewise, the individuals who have opened the account to subscribe to the IPO’s may have kept their accounts idle for long.

What happens when you your Demat account is idle for long?
In the event your account is not utilized for long, it is termed as inactive by the depository participant. It is then further classified as dormant. Although there is no fixed rule how long a Demat account needs to be inactive, you will need to reactive it in order to use it for any purchase or selling of equity. Alternatively, depository participants do not classify an inactive account as dormant if the account holder has paid the required annual maintenance fees. At times, the depository participants will follow up with the account holder and inform the client about the same. If the account is not utilized in the account within the given period, it is classified as dormant.

How to reactive a dormant Demat account?
Here are a few steps you can take to reactivate your Demat account:

• Call or email the customer service for the required reactivation instructions.
• Check out the required Demat maintenance dues and see if you fulfil it.
• Pay a separate reactivation charge
• Be aware of your known your customer requirements.

Once these steps have been undertaken, you must ensure that you satisfy the required requirements to keep your account active. If you have any investment in this account, keep monitoring your portfolio at regular intervals.