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Which is the best bank to open demat account?

To open a demat and trading account, you can choose full-service broker or discount broker. To open a 3-in-1 account, banks are the best place to go. ICICI Bank, HDFC Bank, Axis Bank, Kotak Bank, SBI Bank is the key players to provide 3-in-1 account service which includes Bank Account, Demat Account and Trading Account.

You can open only Bank account and Demat account with any bank. It's not mandatory to open trading account.

Advantages of opening a demat account with bank:

  • If your bank is part of ASBA, then applying in IPO is just a single click process.
  • You can invest in mutual funds with your bank and all your MF holdings can be credited in your Bank Demat account.
  • No need to manage multiple accounts, as 3-in-1 account link all your trading and demat needs.
  • Fund transfer from the trading account to a bank account and vice verse is just a single click process. You don't have to wait for funds.
  • For Mutual Fund SIPs, no need to add separate fund transfer process, the money will directly withdraw from your 3-in-1 bank account.

Disadvantages of opening a demat account with Bank:

  • Trading account brokerage is high compared to the 2-in-1 account with full-service brokers or Discount brokers.
  • No direct mutual fund plans are available with bank Demat account.
  • Need to pay demat AMC fee, where many other brokers are offering lifetime free demat AMC.

Top 5 Banks for Demat Account

These five banks are the best as per the ratings and reviews. The below given banks have a very strong online platform in terms of net banking and trading account. They have the best platform and services to offer.

List of Best Banks for Demat Account
Best Banks for Demat Account Bank Name Broker Name Account Type Investment/Trade Options Rating
ICICI Bank for Demat Account ICICI Bank ICICI Direct Bank, Trading & Demat Equity Cash, Derivatives, Currency,
Mutual Funds, ETF, Bonds, Gov Securities
4.5/5
HDFC Bank for Demat Account HDFC Bank HDFC Securities Bank, Trading & Demat Equity Cash, Derivatives, Currency,
Mutual Funds, ETF, Bonds, Gov Securities
4.5/5
Axis Bank for Demat Account Axis Bank Axis Direct Bank, Trading & Demat Equity Cash, Derivatives, Currency,
Commodities, Mutual Funds, ETF, Bonds, Gov Securities
4.0/5
Kotak Bank for Demat Account Kotak Bank Kotak Securities Bank, Trading & Demat Equity Cash, Derivatives, Currency,
Mutual Funds, ETF, Bonds, Gov Securities
4.0/5
SBI Bank for Demat Account SBI Bank SBICAP Securities Bank, Trading & Demat Equity Cash, Derivatives, Currency,
Mutual Funds, ETF, Bonds, Gov Securities
4.0/5

Best Banks for Demat Account

In compare with above list of top 5 banks for demat account, we rate ICICI Bank as Best Bank for demat Account. ICICI Bank is India's number one private sector bank. The bank have great network with branches. The bank provides 3-in-1 service with its subsidiary ICICI direct. ICICI Direct is well integrated with ICICI bank's online platform, so for your trading needs you will have quick access of your bank account. Fund Transfer is just virtually transfer of fund b/w 2 entities of bank, so it's well integrated. You can apply in IPO from bank portal or ICICI Direct platform. Buying and selling Mutual Funds are also possible from any platform.

As ICICI Direct is part of ICIC Bank, so on security and application performance, you will not see any issue. Online reports, customer care support and quality research are also some key points with ICICI Direct.

  • ICICI is a number one private bank in India.
  • They offering demat services from last 20+ years.
  • First broker in India to provide online brokerage service.
  • Best mobile app and website for your investment needs.
  • Fast and secure transaction.
  • Can invest/trade in stocks, currency, F&O, ETFs, FD, Insurance and Mutual Funds.
  • Local presence via branch offices.
  • Quick Account opening with minimum paper work.
  • Single click investment IPO, Buyback.
  • Easy to setup Mutual funds SIP, STP.
  • Strong research reports.

This FAQ covers "Best Bank for Demat Account", "Bank Demat account", "Best Bank to Open Demat Account".

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User Reviews

avatar
1. Sachin D Apr 18 2019 10:42:19 AM Reply
Dear all, don't open an account with the bank, as they are charging very high brokerage.