Benefits Of Linking Your Demat Account With Your Bank Account
Linking your demat account with a bank account will help you to manage your funds easily which your investing in the stock market. Transfer of money from a bank account to demat or a demat account to bank account when you buy or sell stocks will be very easy at any part of the day even after business hours and will be done in very short time and is more secure as you get immediate confirmations of money transfer through email or sms or both from the bank and stock brokers. You can even manage your demat account without linking it to bank account, but whenever you buy or sell shares you have to go to your stock broker and pay him the purchase amount by cheque or collect the cheque from him for the amount of sale you have made only during the business hours which consumes more time in travelling and processing of cheque issued .Always remember all transactions made by you with a stock broker should be through cheque only, no money should be given in hand, no matter how less the amount of payment is. However my personal suggestion would be better maintain a separate bank account to link it with your demat apart from your personal and salary accounts because it helps you to keep steady lookup as how much money you are putting into the market and your gains from it and it also prevents you from being over enthusiastic and make over investment beyond your limits. Selecting a bank which maintains healthy relations with their clients and have a very good solvency position will help you in safe and secure transactions.
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