HDFC Demat Account- 2021 (complete guide)

When it comes to world-class services and facilities, the HDFC Demat account comes to every individual’s mind. HDFC is one of the leading banks which provides the best services to its customer and one of them is Demat account service.

The Demat account of HDFC Bank is similar to all other banks when we talk about its features and benefits. Apart, from these, there are also some unique features that the HDFC Demat account provides to its customers, but before going let us discuss a bit about the Demat account.

 What is a Demat Account

According to Wikipedia, the Demat account is an account that holds all financial securities like equity or debt in electronic form.

If we talk about the best Demat account India is mainly maintained and managed by two depository organizations, namely Central Depository Services Limited and National Securities Depository Limited. And to make sure all things go perfect, the bank act as an intermediary/mediator between investors and depository.

Other than these, the Demat account also holds all the investments an individual makes, which includes bonds, mutual funds, government securities, etc.

 HDFC Demat Account 

HDFC banks offer seamless, safe, and secure banking services to its customer. HDFC Demat account allows buying and selling as well as transact with their products like shares, stocks with no paperwork and all these are maintained under one roof.

HDFC provides full-fledged security to its customers holding HDFC Bank Demat account or any other accounts, which means that you can update your mobile number to get a notification for your every banking transaction with HDFC Bank.

 Working of HDFC Demat Account

Talking about the working of the Demat account, it is mainly dependent upon two accounts i.e. trading account and your normal bank account which is associated with your Demat and trading account.

If you go with HDFC Bankdemat account, you will get an advantage of holding 3 in 1 account which will have a Demat account, savings account, and a linked Online trading account which can be accessed through a unique Login ID and Password, which will be provided by the bank authority.

If you are taking delivery of shares it is mandatory to have a Demat account. The reason behind it is that when you buy shares, the amount automatically gets credited to your Demat account without any loss involved. The only thing which is needed is your login id and password to check your transaction from time to time.

In India, there is mainly two Depository namely, National Securities Depository Ltd. (NDLS) and Central Depository Services (India) Ltd. (CDSL).

What Are The Facilities Being Offered By HDFC Demat account?

  • According to the survey, there are over 2.03 million Demat Accounts, and there are about 3500+ Demat account centers, and HDFC Bank is one of those.
  • As we discussed earlier that if you hold a Demat account in HDFC Bank, you will be getting a 3-in-1 account which is a combination of saving, trading, and Demat account. It allows you to invest in Mutual Fund, Equity, IPO, and fixed deposit as well.
  • With HDFC Bank, basic account opening charges (Rs. 750 per annum) are usually waived off. In the second year, this annual charge follows a downward slope.
  • HDFC Bank Demat account provides full-fledge to its customer that allows transacting according to your convenience using the internet, visiting branches, customer support.
  • HDFC Bank provides official mobile trading apps that are available for android and iOS devices.
  • You can lock or freeze your account, which means that the HDFC Demat account gives you full freedom to lock or freeze your account for the desired period. During this time frame, no debit will be done in your account.
  • You can access your HDFC Demat Account 24*7 via customer care, app, etc.

Types of Demat Account

 HDFC Demat Account can be classified into two categories i.e. Basic Services Demat Account (BSDA) and Normal Demat Account.

Basic Service Demat Account (BSDA) is meant for small investors who don’t invest much in stock, bonds and are not regularly. Mainly these accounts come with limited facilities that can be availed at a lower cost.

There are some basic criteria to hold a BSDA account, first, you need to have one single BSDA Demat account. This account can be merged with all depositories.

According to SEBI (Securities and Exchange Board of India), it was noticed that most of the

Demat account holders don’t use their account as required but they are paying a high fee for account maintenance. So, to help these types of account holders, the Basic Services Demat Account was introduced.

When the usage of the Basic Service Demat Account, the account holder is requested to move to a normal Demat account.

Features and Benefits of holding HDFC Bank Demat Account

HDFC Bank provides various features and benefits to its customer holding a Demat account.

Some of these features and benefits are:

  • HDFC Account provides free Demat Account Opening
  • HDFC Bank provides a safe, secure, and seamless banking experience to its account holder
  • There is no requirement for stamp duty for the transfer of any securities being held in the HDFC Demat account.
  • Your HDFC Demat can be affected if there is any change in address, a signature of the account holder.
  • The shorter the settlement, the greater will be the liquidity in HDFC Demat account.
  • With HDFC Demat account, now investors can purchase and redeem mutual funds, securities, and other investments electronically.
  • Bonuses, rights, and public issues get automatically credited in HDFC Demat account with the help of ECS.

HDFC Demat Account Opening Eligibility Criteria

Anyone who is interested in trading and investing in the stock market can open an HDFC Bank Demat account. Before opening, you must be having a PAN card, UID, and fill out the KYC form.

Once submitted, your documents will be verified and a unique id will be generated which is also known as client id which can be used further for accessing the HDFC Demat account.

If your age is below 18, you can go for a minor account and as a proof guardian PAN can be used to open HDFC Demat account and when the minor account gets 18+, the bank authority will send notice to make the account KYC approved and turn the account from minor to major.

Documents Required To Open HDFC bank Demat Account

First of all, to open an HDFC Demat account you need to visit your nearest HDFC Branch which is also known as Home Branch.

Necessary documents which are required to open HDFC Demat account are as followed:

  • Identification Proof or POI: Your PAN Card, Voter Card, Driving Licence, telephone bill, or electrical bill can act as proof of Identification.
  • Address Proof or POA: Your Aadhar Card, Ration Card, Bank Passbook, Passport can be shown as address proof.
  • Bank Account Details: You have to submit your bank statement to show bank details while opening the HDFC Demat account. You also need to submit one cancel cheque which can be associated with some other bank accounts.
  • Proof of Income: You need to show your income proof before opening HDFC Demat account. Acknowledge copy of Income-tax return can be supporting documents for proof of Income.
  • Photo: 3-4 recent color passport photo is required to open an account in HDFC.

HDFC Demat Account Charges

There are different charges for different segments which is quite confusing in terms of opening a Demat account. These charges include transaction charges, annual maintenance charges and it varies from broker to broker.

HDFC has waived off the maintenance charges and account opening charges for the first year for the potential customers. 

Here is the charges list for HDFC Demat Account:

  • Opening of HDFC Demat Account: NIL
  • Maintenance Charges Annually: Zero for First Year
  • Dematerialization: INR 5/- Per Certificate + INR 35/- Per Request
  • Credit Transactions: NIL
  • Demat account transactions are monthly which includes NSDL and CDSL Charges.
  • All Charges are being debited from your current/Saving Account.

How To Open Demat Account in HDFC- 2021?

Opening HDFC Demat account is really easy. You can open your account from the comfort of your home through the online process.

You need to follow these simple steps:

  1. Login to your HDFC Net banking by user id and password provided by the bank. Browse for Demat Tab. After clicking, you’ll find the apply online option. Click on “Apply Online” and the Demat Account Opening Form will appear on your screen.
  2. Once the form gets open, fill out all the mandatory information which is been marked with (*).
  3. Once you have submitted the form successfully a message pop up displaying “Thanks for your interest in opening Demat Account with HDFC”. You just need to wait for 2-3 working days to get approved by the bank authority.
  4. A bank representative will come to verify your documents like PAN, UID, Address Proof, and Income Proof. After successful verification, your accounts get opened and it gets linked to your internet banking.

Some Common FAQs On HDFC Demat Account

Q) What is a Demat Account?

A Demat account allows an investor to hold their shares in electronic form. To buy shares we need a Demat account number where various transactions are recorded related to your shares you buy and sell.

Q) Can I Open my Demat Account in HDFC Bank?

Yes, HDFC Bank provides you full freedom to open a Demat account with various benefits and features.

Q) Can I have more than one Demat Account?

Yes, you can have more than one Demat account in any bank.

Q) What are the charges for opening a Demat account?

Different brokers have different charges. They charge you according to the features and benefits they are allowing you in that Demat account.