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Which is the best bank to open a demat account?

Published on Friday, September 7, 2018 by Team | Modified on Sunday, August 9, 2020

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An investor needs 3 accounts to invest/trade in the stock market in India. This includes:

  1. Saving Bank Account
  2. Trading Account
  3. Demat Account.

All national banks offer a 3-in-1 account which includes all the above 3 accounts opened at the same time.

The 3-in-1 account is the set of 3 accounts which are linked together for seamless transactions between them. The 3-in-1 account makes the stock market investment very easy for casual investors and beginners in the stock market.

Note that most beginners in the share market use word 'demat account' for 'demat + trading account'. But technically they are different. The Trading account allows you to trade in stocks while the Demat account holds the stocks you buy in electronic form. Here are more differences between The Trading Account and Demat Account.

Which bank offers demat account?

All large banks in India offer demat account. This includes SBI, PNB, ICICI Bank, HDFC Bank, Yes Bank, Axis Bank.

Demat account is an account where you hold the shares of the company in electronic format. They are similar to a bank account but instead of keeping money, we keep shares, mutual funds, bonds, ETFs, etc. in demat account.

Best bank to offer demat account in India

Following are 5 best banks to offer demat account:

  1. ICICI Bank
  2. HDFC Bank
  3. Kotak Mahindra Bank
  4. Axis Bank
  5. SBI Bank

They all are very similar in their offering, charges, trading platform and customer services.

We suggest you open the 3-in-1 account with your existing bank. As you already have a relationship with them, it makes it easy. If your bank doesn't offer demat account, you could pick up any of the banks listed above.

ICICI bank Demat account is the best among all others for the following reasons:

  • Offering 3-in-1 account for over 20+ years.
  • 10+ lakhs active customers.
  • Nice website and mobile app (ICICIDirect) to manage demat account online.
  • Invest/trade in Stocks, F&O, Mutual Funds, ETF, FD, Insurance, Loan etc.
  • Customer services in branches of ICICI Securities.

Note that other banks like HDFC, Kotak, Axis, Yes and SBI are equally good.

Banks offering demat account India

Most banks offer the Demat account. Below is the report which shows popular banks offering 3-in-1 accounts to the retail customer? Also, check bank demat account charges in this table.

Is my demat account safe with the bank?

A lot of investors and traders, particularly those who are new to the trading world think that demat accounts are opened with banks and brokers. However, in reality, banks and brokers are mere facilitators in the demat accounts.

The demat accounts are opened and managed by central depositories. In India, currently, there are two depositories NSDL (National Securities Depository Limited) and CDSL (Central Depository Securities Limited).

Every broker offering a demat account is a depository participant with either of the two central depositories and is authorized under the Depositories Act. to act as an intermediary between the central depository and investors.

So, actually you can choose a bank or a broker to open a demat account with but your account will be opened with any of the central depositories. It depends on your bank or broker to which depository he is partnered with.

There is not much to choose between NSDL and CDSL in terms of features and facilities offered in demat accounts. The only critical difference can be in the fees charged. The central depositories charge fees from their partner banks and brokers for maintaining demat accounts. This fee is passed onto customers by banks and brokerage companies.

So compare the fee charged by the 2 depositories and then choose a bank or a broker that is partnered with the depository charging a low fee.

Top 5 Bank Demat Account

1. ICICI Bank Demat and Trading Account

ICICI Bank is a leading private bank in India. ICICI offers trading and demat account services for 20+ years. ICICI Bank's online trading website and mobile app; ICICIDirect is among the best in the industry.

If you have a bank account with ICICI, it is highly recommended to convert your saving account in ICICI Bank 3-in-1 investment account.

ICICI demat brokerage charges are higher in comparison to the online discount stock broker like Zerodha and 5paisa. But discount stock brokers do not provide 3-in-1 account, trading tips, local support and relationship manager.

Read ICICI Bank 3-in-1 Account Review for more detail.

2. HDFC Bank Demat and Trading Account

HDFC is the 2nd largest and most respected financial services provider in India. HDFC started offering the demat account in the year 2000 and held the position of 2nd largest full-service broker in India.

For HDFC bank account holder, it is very convenient to open a 3-in-1 account and start investing in the Stocks, Mutual Funds, Corporate FD's, NCD, Bonds and many more financial instruments online as well through branches or relationship manager.

HDFC demat brokerage charges are highest among the industry. They charge premium brokerage for their 3-in-1 account, research and local support through bank branch offices.

Read HDFC Bank 3-in-1 Account Review for more detail.

3. Kotak Bank Demat and Trading Account

Founded in 1994, Kotak Securities is a subsidiary of Kotak Mahindra Bank. Kotak 3-in-1 account comes with online trading and investment, investment through personal relationship manager, research and trading tips, portfolio analysis and many other features.

Kotak Securities is 4th largest stockbroker in terms of the number of the customer.

Kotak demat brokerage charges are available on our Kotak Bank 3-in-1 Account Review page.

4. Axis Bank Demat and Trading Account

Axis bank is a fast-growing private bank. Axis bank 3-in-1 account offers investing in the stock market as well as many other financial products like mutual funds, FD, Insurance etc. Axis Direct website and mobile app allow customers to invest online and manage demat account online.

Research reports, trading tips, dedicated relationship manager and 3-in-1 account are among the major advantages of Axis Bank Demat account.

Axis bank is the 6th largest stock broker in India. Find Axis Bank Demat brokerage charges at out Axis Bank 3-in-1 Account Review page.

5. SBI Bank Demat and Trading Account

SBI offers online trading and investment services through SBI 3-in-1 Account. SBI is 10th largest full-service broker. SBI demat account advantages include its reach to rural areas, strong research and advisory, online trading platform, a wide range of investment options and local customer service.

If you already have a bank account with SBI, go ahead and open a Demat account with them. It is simple and makes stock market investment and trading very easy.

SBI Demat brokerage charges and trading plans are available on our SBI Bank 3-in-1 Account Review page.


A demat account with a bank is the best option available for beginners and casual investors. Almost all large banks offer a 3-in-1 account. This account offers hassle-free stock market investment. It actually doesn't matter which bank you choose for your demat account as they offer very similar services at almost the same demat brokerage charges.

Once you understand how stock market transitions work and increase your trading frequency, it is recommended to move to discount brokers like Zerodha, 5paisa or ProStocks to save your brokerage cost up to 90%.

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2. Radhakrishna Iyer   I Like It. |Report Abuse|  Link|September 11, 2020 2:48:56 PMReply
Never, ever have anything to do with HDFC bank. SB account, Demat/Trading account or any type of account. Cut-throat bank, having no qualms about cheating their customers in any or all possible manner. For instance, as of now (11-09-2020), it is the only bank in India, that is charging their customers for doing IMPS transactions over their netbanking system !! Their phone banking service, Netbanking service and branch banking service are all of pitiable quality and is the worst in the banking industry, by any standards. I am a retired employee of the Central bank of the country and I know what i am talking about. Never have anything to do with this bank. Sooner or later, you will get your reward for not heeding to this advice.
1. Pradeep Kumar MS   I Like It. |Report Abuse|  Link|July 6, 2020 3:12:34 PMReply
That, HDFC Bank is highly respected is highly questionable. I have been with them since their earliest days and has gently moved away from their new found GREED and ARROGANCE. I have not moved away in spite of repeated conning, thinking that it's is a personnel issue, than a bank issue. But HDFC Bank has been caught money laundering multiple times. It can't be a personnel issue, since bank gave a clean chit each time and then Aditya Poori goes public saying it's a personnel issue - they contradict themselves. Aditya Puri says his bank is the Oberoi of Banks, but he forgets that Oberoi serves their Pooris clean. A perfect bandits den, staffed by cut throat shylocks.