Demat account AMC charges you didn't know you were paying
Your idle demat account charges an annual AMC fee even with zero trades. Here's what you're actually paying — and how to stop the bleed.
You opened a demat account during the 2020 bull run, maybe bought a few Nifty 50 stocks, and then kind of forgot about it. The account is just sitting there. No harm, right?
Wrong. That account is quietly billing you every year — and if you have more than one (which, honestly, a lot of people do), the charges add up faster than you’d think.
What Is AMC and Why Should You Care
AMC stands for Annual Maintenance Charge — it’s basically a subscription fee your depository participant (the broker or bank that holds your shares) charges you just for keeping the account alive. Think of it like a locker rental fee at a bank. Whether you use the locker or not, you pay for it.
Most people never notice this because it gets debited quietly, often once a year, sometimes quarterly. It doesn’t show up on your bank statement with a dramatic label. It just disappears.
How Much Are You Actually Paying
Here’s where it gets real. AMC charges vary wildly depending on where you opened your account.
| Platform | AMC Charges (approx.) |
|---|---|
| Zerodha | ₹0 for the first year; ₹300/year after |
| Groww | ₹0 (currently free for equity) |
| HDFC Securities | ₹750–₹999/year |
| ICICI Direct | ₹700–₹850/year |
| SBI Securities | ₹400–₹500/year |
| Kotak Securities | ₹600/year |
That might not sound like a lot. But here’s the thing — if you opened an account with HDFC Securities five years ago, used it twice, and forgot about it, you’ve likely paid somewhere around ₹4,000–₹5,000 in AMC alone. For an account you barely touched.
Now imagine you’re 28, earning ₹70,000 a month in Bengaluru, and you have two demat accounts — one with your bank from when they pushed you to open it, and one with Zerodha that you actually use. That idle bank account could be costing you ₹750–₹999 every year while doing absolutely nothing for you.
The Hidden Layer: Depository Charges
Most people think AMC is the only charge. It’s not.
Your broker is just the middleman. The actual entity that holds your securities in digital form is either NSDL (National Securities Depository Limited) or CDSL (Central Depository Services Limited) — two government-backed depositories regulated by SEBI. They charge too, and your broker passes that cost on to you, sometimes bundled into the AMC, sometimes separately.
This is why two brokers can both claim “zero AMC” but still charge you differently. One might absorb the depository fee, another passes it on as a separate line item called a Depository Transaction Charge or similar. Always check the full schedule of charges, not just the headline AMC number.
Zerodha, for instance, charges ₹13.5 per debit transaction (when you sell shares) as a depository charge — this goes to CDSL. On a small account where you’re trading occasionally, that adds up faster than the annual AMC would.
What You Should Actually Do
Stop paying for accounts you’re not using. That’s the short version.
If you have a demat account with a traditional bank broker — SBI, HDFC, ICICI — and you’re not actively using it, close it. The process is straightforward: you submit a closure form (physical or online depending on the broker), transfer any remaining holdings to your active account, and get a confirmation. It usually takes 7–15 working days.
If you are actively investing, consolidate into one account with a discount broker. Groww currently charges zero AMC for equity demat accounts. Zerodha charges ₹300/year after the first year. Compared to ₹800+ at a traditional bank broker, the math is simple.
For someone investing ₹14,000/month in SIPs and direct stocks — a reasonable number for someone earning ₹70,000 in a metro — paying ₹999/year in AMC to a bank broker versus ₹0 at Groww means you’re essentially losing one SIP instalment every year to a fee that serves no purpose.
Over 10 years, assuming that ₹999 was instead invested and grew at 12% annually (roughly what a Nifty index fund has delivered historically), you’d have lost about ₹17,500 in opportunity cost. Small? Yes. Pointless? Also yes.
The One Thing Worth Remembering
AMC is not a fixed, regulated number. It varies by broker, it changes over time, and it’s often buried in a PDF that nobody reads when they sign up. The way to stay ahead of it is simple: check your annual charges statement (your broker is required by SEBI to send this), close accounts you don’t use, and pick one platform where the fee structure is transparent and low.
Frequently Asked Questions
Can a demat account charge AMC even if it has no shares in it?
Yes. The AMC is charged for maintaining the account, not for holding assets. An empty demat account with HDFC Securities or ICICI Direct can still cost you ₹700–₹999 per year. Close it if you’re not using it.
Is Groww demat account really free with no AMC?
As of now, Groww charges zero AMC for equity demat accounts. However, depository transaction charges (when you sell shares) still apply. Always check their latest fee schedule at groww.in since this can change.
How do I close a demat account I’m not using?
Download the account closure form from your broker’s website, fill it in, attach a copy of your PAN and a cancelled cheque, and submit it. If you have holdings, you’ll need to either sell them or transfer them to another demat account first. The process takes roughly 7–15 working days.
Can I have more than one demat account legally?
Yes, SEBI allows you to hold multiple demat accounts. There’s no penalty for having two or three — but there’s also no benefit if you’re paying AMC on idle accounts. Most people are better off consolidating into one.
What’s the difference between NSDL and CDSL?
Both are depositories — they hold your shares in electronic form. NSDL is older and often used by traditional bank-linked brokers like HDFC and ICICI. CDSL is used by most discount brokers including Zerodha and Groww. For everyday investors, there’s no meaningful practical difference between the two.