HDFC account opening Guide

HDFC Bank is one of the leading banks in the country, it offers Demat account facilities and services to its customers. HDFC Demat account is quite similar to other Demat accounts according to its features and benefits. Moreover, some unique features of HDFC Bank’s Demat account will make you open an account. 

A Demat account is an account that will enable the trader or investor to hold shares in an E-form or electronic format. Additionally, Demat word is an abbreviated word for Dematerialisation. Dematerialization is a process in which physical shares are converted into electronic format. Moreover, the Demat account is an essential tool for investment and trading nowadays, since March 31, 2019, when SEBI made it mandatory for all traders to have a Demat account. Demat Account has many benefits and features that will be a great asset to the customers. This account can hold the investments like:

• Government Securities

• Bonds

• Mutual Funds

• Shares

• Exchange-Traded Funds, etc.

A Demat account allows the investors to buy, hold and sell the shares or stocks in an easier and quicker method without any paperwork. The account helps to keep your shares and securities safe, in a seamless mode, and online which makes it very to track. Unauthorized Transactions are prevented if you update your mobile number with DP (Depository Participant that is HDFC Bank Ltd.) 

How does HDFC Demat Account Work?

The Demat account works with the help of two dependent accounts that are: The trading account and the Demat account. Demat account just holds your money and shares for trading purposes but for placing a transaction you need a trading account. Moreover, the trading account and the Demat account are linked together which makes the whole process easy and quick. 

You have the facility of a three-in-one account that will provide benefits of Savings account, trading account, and Demat account. Additionally, a Demat account is a mandatory account if you want to go for Delivery of Shares. When you place a transaction to purchase shares, they get automatically transferred to your Demat account. The risk of losing shares is eradicated and is carried seamlessly. Moreover, the request of buy or sell is put in your trading account with details, now your DP will come in the picture and it will forward this to the stock exchange immediately. 

Features & Benefits offered by HDFC Demat Account

• HDFC Bank Demat Services offers an online, seamless, safe experience where you can track your investments. 

• Charges for opening a Demat Account with HDFC Bank are Zero.

• AMC or Annual maintenance Charges for HDFC Demat Account is Rs.750 which is waived off for the first year.

• As there is no Stamp Duty required to transfer securities, the cost is reduced.

• Settlement is shorter and the liquidity is greater

• IDEAS & Easi facilities allow you to see current transactions and balance Demat Account in real-time.

• Investors can purchase or sell securities, mutual funds, and other such investments.

• While you subscribe to IPO you do not need to issue a cheque as an investor. All you need to do is write your bank account number with a signature in the application form that will authorize the payment. 

• Storage of Equity, ETF, Mutual Funds, NCD, IPO is possible in HDFC Demat Account. 

Documents required for Opening HDFC Demat Account

The documents that you will need while opening an HDFC Demat account are:

• Proof of identification (POI): The documents that can be submitted as POI are-

PAN Card, Voter’s ID Card, Electricity Bills, Driver’s License, Telephone Bills, etc. 

• Proof of Address (POA): The documents that can be submitted as POA are-

Driver’s License, Voter ID card, Ration card, Passport, bank statement, electricity bill, and telephone bill. 

• Bank Account Details: Bank account details of the beneficiary are needed while opening a Demat account. A canceled cheque of the existing account is required to be submitted. 

• Proof of income is also required for trading in F&O. Moreover, a copy of the acknowledgment of filing Income Tax Returns will fulfill the requirement. Also, submit 1 to 3 passport size photos along with it. 

Fees & Charges of HDFC Demat Account

• Demat account opening charges are free of cost

• AMC for the first year is Rs.0

• Debit transactions on mutual funds, equity: 

1. Rs.20 minimum for Regular Demat Account or 0.04% of the value of the transaction.

2. Rs.40 minimum for BSDA or 0.06% of the value of the transaction

• Credit Transactions: NIL

• Dematerialization: Rs.35 per request and Rs. 5 per certificate.

Steps to Open HDFC Demat Account 

Step 1: Log in to your HDFC Banking URL and search for Demat Tab. After you find it on the top right corner click on the Tab. You will see few options in front of you, click on the Option of ‘Apply Online.’ Now you will see ‘Demat account Opening Form’ on your screen.

Step 2: Once the form is loaded you need to fill up all the details required in the form. After you fill in the details you have to click on the checkbox that says -HDFC Securities Representative to call you and click on the Submit Button.

Step 3: Once the form is submitted you will see a message that will pop up which is- Thank you for your interest in the HDFC bank Demat account. Within two working days, HDFC representatives will call you to verify the details. Once all the information is verified you need to send all the documents as mentioned above. 

Conclusion

To sum it up, the Demat account is very beneficial for investors and traders. HDFC Bank with its reputation provides great features and benefits of opening a Demat account with them. Moreover, the steps mentioned above in the article will help you with the easy opening of a Demat account with HDFC. The charges are reasonable and benefits like No AMC for 1st year, no account opening charges, and no stamp duty will reduce cost. Know the charges, benefits, suitability appropriately, and open your Demat account with HDFC Bank now.