Saving vs demat account

saving vs demat account
Feature	Saving	Demat
Purpose	To keep money safe and earn interest.	The purpose of the Demat account is to store the shares or other assets.
Use	Used for daily transactions and savings.	Used to hold shares in electronic form.
Example	Like a piggy bank or bank where you save money.	Like a locker where you store your shares.
Interest/Profit	You earn interest on your saved money.	No interest earned, just keeps shares safe.
Accessibility	Easy to use, withdraw money anytime.	Cannot directly access money, only holds shares.
Opened By	Anyone who needs a bank account.	People who invest in stocks.
Physical Form	Money can be withdrawn as cash or online.	Shares are kept in electronic form, not physical.
Risk	Very low risk, money is safe in the bank.	No risk in holding shares, but shares can lose value.
Fees/Charges	Some accounts may have maintenance fees.	Annual maintenance charges may apply.
Regulation	Governed by banking laws and regulations.	Regulated by stock market authorities.
Time to Open	Can be opened quickly, often online.	Requires more paperwork, linked to a Trading account.
Linked Accounts	Can be linked to a Demat and Trading account.	Must be linked to a Trading account to buy/sell.
Minimum Balance	Some accounts require a minimum balance.	No balance, just holds shares.
Transactions	Mostly used for deposits, withdrawals, and payments.	No direct transactions, only holds shares.

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Businesses that want to raise money by selling stock can choose between two types: common stock and preferred stock.

Stock exchanges reflect the economic health of the country. For instance, the NSE and BSE measure the health of India's economy.

The trading account is the account through which shares or other assets are bought and sold.

The purpose of the Demat account is to store the shares or other assets.