What Is The Account Maintenance Charge For Demat Account?

Demat, short for dematerialisation, Account holds your shares and securities electronically. A Depository Participant (DP) is responsible for carrying out this process. Depository Participants can be a bank, stockbroker or any other financial institution that meets the DP criteria issued by the SEBI.
The Depository Participant acts as a link between the authorising body of your shares. The authorising body can be either the Central Depositories Services Limited (CDSL) or the National Securities Depository Limited (NSDL).
Demat Accounts have made investing in stocks simpler and quicker than ever. You can now keep track of your shares and stock and digitally operate your Demat Account from anywhere in the world. However, you need to pay a specific fee to operate this account. 

The Brokerage Houses and Depository Participants (DPS) levy a minimal annual or folio maintenance fee for their services. The AMC fee amount is generally between ₹300 to ₹900. You can pay the fee as a one-time payment or quarterly.
Most Depository Participants offer zero AMC Demat Account in the first year to their customers. Many depositories also offer to open a Demat and Trading account together. The annual maintenance fee in such a case is lower than the usual amount.
The AMC may differ if you open a Demat Account in one bank while the Savings Account linked is in another.

You can read more about this here.

Note: Even if your Demat Account is inactive, you are liable to pay the account maintenance charge.

1. Account opening charges/fee

All investors must pay a basic opening fee to open a Demat Account. Generally, the fee amount is negligible or has offers associated with it to encourage more people to open an account. You can also open 2-in-1 or 3-in-1 accounts. This facility allows you to link your Demat, Trading, and Savings Accounts, making it easier to carry out transactions.

2. Custodian/ Safety fee

The Depository Participant charges a custodian or safety fee to keep your securities safe with the custodian. You are charged ₹1 for each International Securities Identification Number (ISDN) mapped to your Demat Account.
You can pay the custodian fee as a one-time payment or every month. The payable fee depends upon the number of securities you hold.
Note: If you have made a one-time payment for the custodian fee, there will be no additional charges for each ISDN mapping.

3. Transaction fee

Every time you buy and sell shares from your account, you are liable to pay a monthly transaction fee. The amount payable depends upon your type of transaction. Typically, a basic fee of ₹1.5 is charged for every transaction.
You can open multiple Demat accounts, but you can only hold one account with a single depository. It is often recommended to maintain two Demat accounts: one for trading and the other for long-term investments. This approach allows for better portfolio management and can streamline your investment strategy.
Opting for a Demat-cum-Trading Account can be very beneficial, as you can keep a check on your accounts under one tab. This account allows you to make seamless trades within a matter of a few minutes.
HDFC Bank offers you a 3-in-1 account where you can open and link your Demat, Trading, and Savings Accounts. To open a 3-in-1 Demat Account with HDFC Bank, click here.

*Terms and conditions apply. This is an information communication from HDFC Bank and should not be considered as a suggestion for investment. Investments in the securities market are subject to market risks; read all the related documents carefully before investing.