Saving vs demat vs trading account

Comparison between saving, demat, and trading accounts

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Physical Form	Money can be withdrawn as cash or online.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

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Saving vs demat vs trading account

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

Difference between saving and demat account illustration

Saving vs demat account

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