Low brokerage is one of the features that distinguished Zerodha from the rest of the stock brokers in the Indian share market. But when it comes to other fees like Zerodha AMC charges, does it provides relaxation to its customers there as well?
In this article, let’s have a quick understanding of what AMC charges are and when and how to pay this fee.
What is AMC Charges in Zerodha?
Before getting into the detail of fees, let’s have an understanding of AMC Charges.
Also called account maintenance charges it is charged for maintenance and to ensure the safety and security of your holdings in the demat account.
Zerodha is a discount broker and thus everyone looks for the minimum fees and payment when it comes to AMC charges.
So, let’s check Zerodha charges for demat AMC.
So apart from the Zerodha account opening fees, you need to pay AMC charges equal to ₹300/annum plus GST. However, the broker gives you relaxation by allowing you to pay per quarter.
Let’s now get into more detail to know when and how does these charges are deducted and is there any option to avoid it.
When Does Zerodha Charges AMC?
On Zerodha demat account opening, the broker starts offering you demat and trading services, and right from the beginning it charges you the maintenance cost on your demat account.
Also, these charges are charged in advance. Thus, right from the activation of the account Zerodha ask for AMC fees.
Thinking about when you need to pay these charges?
Well! one has to pay Zerodha AMC charges till the account is active, even if there is no shares or holdings in the account. It is therefore recommended that if you are not using Zerodha demat account actively, then it is good to close it to avoid AMC charges.
Zerodha AMC Charges Date
So, if you are using your demat account actively, then Zerodha starts deducting it from the first day of activation. Here, you can choose the option to pay it quarterly or annually and the fees are deducted accordingly.
For example, if you open an account on Nov 24, 2022, and chose to pay it every quarter, then the first part of ₹75 plus GST will be deducted right away.
Then after every three months i.e. February 24, 2023; May 24, 2023, and August 24, 2023, the remaining fees will be charged.
How to Check AMC Charges in Zerodha?
If you want to check how much the broker is charging as AMC charges then you can find the details in the Zerodha Console by following the steps below:
- Click on your account ID.
- Now click on Console and then on Funds.
- Choose equity and then View the Statement.
- You can either download it or check the AMC charges with the month for which the fees is charged in the app.
How to Pay Zerodha AMC?
When it comes to paying Zerodha AMC charges then it is something that can be smoothly done. Just like your brokerage charges are deducted from the trading account, AMC charges are also directly paid from your trading balance.
So, you don’t need to worry about adding or sending money to maintain or keep your account active. Just make sure that you maintain a sufficient balance in the trading account to avoid any penalty or delay in payment.
How to Avoid AMC Charges in Zerodha?
Well! there is no second thought that there is nothing better than getting relaxation from paying any fees or charges.
So, when it comes to AMC charges, Zerodha too offers you the opportunity to avoid them.
AMC charges are charged only on a demat account. As far as you are using Zerodha Kite to do trade, i.e. open only a trading account or Zerodha commodity account then you don’t have to pay any AMC fees and thus can avoid these charges.
Taking into consideration Zerodha AMC charges, it is a pretty good system of quarterly payments. This not only makes payments flexible but also eases the client’s burden.
Besides, the basic Zerodha AMC charges are worth INR 300 which makes Zerodha an ideal broker to opt for (particularly for budding investors).
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