Once you decide to invest in the stock market or you have started to develop interest towards it then, it is obvious to have this question in your mind. Let us try to highlight some of the major differentiation between both these accounts here.
Saving account is an option to park your money in the banks or financial institute on nominal interest rate. What distinguishes one saving account from other is the reputation of institution which is directly related to safety of your money.
In a simple word, it is an account to hold your stocks into electronic form. Holder of such account can preserve the share, bonds and other securities without any paper hassle. It completely eliminates the physical transaction and makes it easy and reliable for investor to hold their assets.
Technically, the answer is ‘No’, at least as of now. One can link the saving account to particular demat account for smooth transaction. It will provide easiness to buy stock as amount would directly be debited from saving account and shares will be transferred to demat account. Hence, it should be clear now that to pull out the transaction, one needs bank account but to hold the shares or securities, a demat account is required.
Investors or even students might have this question as what are some of merits which attract them to open a demat account. There are multiple advantages of the same and a vice versa. However, the merits have certainly take over the demerits and investors are happily and enthusiastically doing transactions via demat accounts. Let’s have a look on some of the major points here to make it smooth to understand.
Hope you like this article. Feel free to contact us in case you want to know further.
read this also:-