Today In this article I thought of explaining the Zerodha 3-in-1 account and Upstox 3-in-1 account so that you all can make a wise decision while opening an account with these two entities. Firstly, we will cover each account in detail with their offerings and process. Followed by the difference between both the accounts.
Zerodha 3-in-1 Account
Zerodha has joined hands with IDFC First Bank to provide a 3-in-1 facility to their account holders which are inclusive of trading, Demat, and a bank account. In other words, all three are clubbed in one to provide a delightful and seamless experience to their clients by enhancing the trading and banking experience.
In order to open a 3-in-1 account at Zerodha, the user needs to open an IDFC First bank account. Post which opens an account with Zerodha. Once you’re done with the “e-sign” based on your Aadhar, a pre-filled POA will be generated. You have to print the POA, sign it and send it to the Zerodha head office address. This would be applicable to the new user on the Zerodha platform.
The ones who already have Zerodha cum Demat account and IDFC first account linked to Zerodha as a primary bank account can simply link both the accounts to convert into 3-in-1 accounts in three easy 3 steps:
1) Vist the zerodha website and click on the continue with Kite option.
2) Under Verify Personal and Bank details. You will find “Convert to IDFC First Bank 3-in-1 account”.
3) Followed by downloading the pre-filled POA, signing it, and courier it to Zerodha Headoffice address.
Address for Zerodha Headoffice to send the POA:
#153/154 4th Cross Dollars Colony,
Opp. Clarence Public School,
J.P Nagar 4th Phase, Bangalore – 560078.
Now let’s discuss the prominent benefits which a user can avail of:
- Fund transfer will be on a real-time basis just in splits of seconds from the bank account to trading accounts without any authentication.
- It will be free of cost otherwise it’s a chargeable method except for the UPI option.
- No upper limit for fund transfer.
- As it’s a 3-in-1 account so with the Zerodha account itself one can keep complete track of all the holdings in one place. ( Stocks, mutual funds, bonds, SGBs, cash, ETFs, etc)
Upstox 3-in-1 Account
Soon after Zerodha has launched a 3-in-1 account facility for their user, the other competitor in the trading world known for the discount brokerage as Upstox launched a 3-in-1 account by tieing up with Indusind bank. This account is also known as Industox 3-in-1 account.
This account also combines the features of Trading, Demat, and Bank account. Consequently, guarantee seamless and simplified trading experience.
Steps to open a Upstox 3-in-1 account:
1) Visit the URL: https://upstox.com/3-in-1account/IndusStox/register.
2) Click on the Signup option by entering your email address and mobile number.
3) Verify the OTP received via SMS and email.
4) Key in your personal details as asked.
5) Verify the Aadhar with OTP and complete the IPV verification by scanning a video of you with your aadhar.
5) Once the above steps are done download the POA and send it to their address.
6) After which you’re ready to use the Upstox 3-in-1 account for trading purposes.
The same benefits that Zerodha offers are applicable to the Upstox 3-in-1 account as well. Apart from those benefits, here are a few more benefits of the Upstox 3-in-1 account:
- No need to maintain a minimum balance in the IndusInd bank account.
- You continue to earn interest on unused funds allocated for trading purposes.
- User will be rewarded on the transactions made by debit card. You can utilize those rewards points to cover the brokerage charges.
- Low brokerage on equity intraday as low as 0.05% or Rs.20/- whichever is low.
Now let’s review the difference between both the accounts to understand whether to go for 3-in-1 accounts or open a regular account.
Zerodha 3-in-1 Account vs Upstox 3-in-1 Account
|Zerodha 3-in-1 account||Upstox 3-in-1 account|
|Under this option, IDFC banks do not offer zero-balance bank account. Instead, you’re supposed to maintain a minimum balance of Rs.10000 otherwise you will be penalized for non-maintenance of AMB.||Zero balance IndusInd saving bank account.|
|No interest on the transferred fund to the trading account.||In this account, you can allocate a certain amount for trading purposes. Above all continue to earn interest on the unused trading funds.|
|On Equity Intraday/Futures transactions, 0.03% or Rs. 20 (whichever is low) will be charged on executed orders.||You will be charged 0.05% or Rs.20 (whichever is low).|
|Sebi charge applicable as Rs.10 per crore||Sebi charge applicable as Rs.5 per crore|
|For equity delivery, zerodha offers zero brokerage.||However, Upstox charges Rs.20 or 2.5% whichever is lower on equity deliveries.|
|Call on Trade charges is Rs.50+18% Gst on the same.||No charges on call on trade free up to 10 calls per month.|
|AMC ₹300/year + GST charged quarterly||AMC is Rs.300 +GST charged quarterly|
|Account opening charges of Rs.200||Account opening charges is Zero|