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Benefits of Linking Savings Account with Your Online Demat Account

Planning to start trading in the stock market? The three essentials you need to have in order to start buying and selling shares and other securities are a savings account and a free Demat and trading account. A Demat account holds all your shares and securities in the electronic or dematerialised format, while a trading account allows you to buy and sell the shares thus held. The proceeds for the sale of your securities are credited to your savings account and whenever you buy shares, this account is debited.

These three accounts must be connected to one another seamlessly so that you can carry out your trade transactions effectively. While your free Demat and trading accounts are often already mapped, you must ensure that the savings account is also linked with your Demat account. With the interlinking of these accounts, the required amount will be automatically debited or credited from your savings account each time you make a transaction.


·     Interlinking your online Demat account with your savings account offers you the convenience to make transactions anywhere and at any time. As markets tend to be extremely volatile, the flexibility afforded by linking your Demat account with your savings account can help you quickly buy or sell and never a financial opportunity.

·       By linking the two accounts, you can easily buy and sell shares as well as other financial instruments like corporate fixed deposits, bonds, gold bonds and mutual funds. In thev case of stocks, after conducting proper fundamental, technical and market analyses, you can place your trades easily through your trading account linked to your savings account.

·       You can easily monitor and track all your trades, sales and purchases along with the returns you may have made as a result of such transactions. You can track your Demat, savings and trading account easily through your smartphone. In fact, should you opt for a 3-in-1 Demat, trading and savings account, you can monitor everything through a single mobile application, without having to track multiple portals.

·       The applications supported by blocked amount (ASBA) process allows investors to apply for initial public offering (IPO ) without their savings account being debited. The amount of money needed for the number of shares is blocked in your savings account and is debited only when the shares are allotted to you.


As fresh innovations inundate the world of trading, thanks to the availability and prevalence of smartphones and the internet, it should not be difficult for investors to trade in the stock market. By simply linking Demat account with bank account, you can carry out all your transactions easily while being able to keep track of them. Timely and efficient trading on the stock market is required because markets are volatile and even slight delays can lead to unfavourable outcomes. Demat and trading accounts that are interlinked with your savings account, therefore, are the need of the hour.

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account | 10 Points to Remember When Operating your Demat Account | Types Of Demat Account & Trading Account


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