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How to transfer money from the Demat account to a Bank account?

Jaleel M

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Demat account is similar to your bank account, but instead of money, it is used to store or hold the shares and securities in a digital form. People use their Demat accounts to transfer money they acquire after selling their securities, such as shares and other derivatives. On the other hand, your linked trading account acts as an interface to buy and sell the shares. Once you have successfully made sales through your Demat account, the funds will automatically be transferred to the linked trading account. You can then transfer your funds to your bank account.

Steps to transfer money from your Demat account to your bank account

  1. First of all steps, you are required to login into your trading account, which has been linked to your Demat account.
  2. After logging in, go to the ‘Funds’ of the ‘Accounts’ section.
  3. When you enter the ‘Funds’ section, you will notice two options: add funds and withdraw.
  4. To transfer money to your bank account, select the ‘withdraw’ option and enter the amount you wish to transfer. On the other hand, if you want to add funds to your trading account to buy more securities, you can choose the ‘add funds’ option and enter the desired amount.
  5. If you have multiple bank accounts linked to your trading account, choose the one you wish to make the transaction from and enter the password to transfer the amount successfully.
  6. The money will then be transferred to the bank account depending on the mode chosen.

How long does it take to transfer money from the Demat account to the bank?

It can take up to 2 days for the money to show up in your bank account after successfully transferring it from the Demat account to your bank.

Can we transfer money from the Demat account to the savings account?

No, you cannot directly transfer money from your Demat account to your savings account. Funds can only be transferred to a savings account through the trading account that has been linked to your Demat account.

When can we withdraw money from the Demat account?

After we make sales of our equities, the funds will show up in the account only after the settlement period, that is, T+2 (trade +2 days). After the funds show up in your account, you will beable to withdraw money from your Demat account.

Parting Words

As we read in the above article, it is pretty easy to transfer money from a Demat account to your bank account by following only a few simple steps through your registered trading account.

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