Annual Maintenance Charges (AMC) are one of the silent expenses that eat into your investment returns. Many investors in India pay ₹300 to ₹1,000 every year for Demat account maintenance without realizing they can significantly reduce or even eliminate this cost. In 2026, with increasing competition among brokers, there are several smart hacks to lower or completely remove AMC from your Demat account.
This article shares practical and proven strategies to reduce your Demat Account Annual Maintenance Charges.
What is Demat AMC?
AMC is the fee charged by your Depository Participant (DP) — such as HDFC, ICICI, SBI, Zerodha, or Groww — for maintaining your Demat account. It is usually debited once a year, regardless of whether you trade or not. Even if your account is inactive, AMC continues to be charged in most cases.
Reducing AMC directly increases your net returns, especially for small and medium investors.
Top Demat Account Hacks to Reduce AMC
- Switch to a Zero AMC Broker This is the most effective hack. Several discount brokers now offer lifetime zero AMC plans. Popular options in 2026 include:
- Zerodha (₹0 AMC on Basic Plan)
- Groww (Zero AMC lifetime)
- Upstox (Zero AMC for many accounts)
- Angel One (Zero AMC on select plans)
If your current broker charges AMC, consider transferring your holdings to a zero-AMC broker. The process is called Demat Account Transfer and can be completed in 7–15 days.
- Negotiate with Your Existing Broker Many traditional brokers (HDFC, ICICI, SBI) offer reduced or zero AMC if you maintain a high balance or have a strong trading relationship. Call customer care and request a waiver or downgrade to a lower AMC plan. Long-term customers with good trading volume often get positive responses.
- Maintain Minimum Average Balance Some brokers waive AMC if you maintain a certain average balance in your linked savings account or trading ledger. For example, keeping ₹10,000–₹25,000 as minimum balance can help you avoid AMC in certain plans.
- Convert to Inactive Account Strategically If you are not actively trading, request your broker to mark your account as “inactive.” Some brokers reduce or waive AMC for inactive accounts. However, check the terms carefully, as reactivation may involve charges or documentation.
- Opt for Lifetime Free Plans During Account Opening If you are opening a new Demat account, always choose the lifetime zero AMC plan. Most modern brokers provide this option by default. Avoid plans that charge AMC unless they offer significant benefits in brokerage or research.
- Consolidate Multiple Demat Accounts If you have multiple Demat accounts, close the ones you rarely use. Each active account may attract separate AMC. Consolidating into one or two accounts helps reduce overall maintenance costs.
- Review Your Annual Statement Carefully Every year, download your consolidated account statement and check for hidden AMC or other charges. Dispute any incorrect debits immediately with your broker.
Comparison Table: AMC Charges (2026)
| Broker | AMC Charges | Best For |
| Zerodha | ₹0 (Lifetime) | Active traders |
| Groww | ₹0 (Lifetime) | Beginners & long-term investors |
| Upstox | ₹0 on most plans | Frequent traders |
| HDFC Securities | ₹750 – ₹1,000 per year | Full-service users |
| ICICI Direct | ₹600 – ₹900 per year | Existing ICICI customers |
| Angel One | ₹0 on Active Plan | High-volume traders |
Important Things to Remember
- Transferring shares from one Demat account to another attracts DP charges (₹20–₹50 per scrip).
- Always compare the total cost (brokerage + AMC + other charges) before switching brokers.
- Closing an old Demat account may attract closure charges in some cases.
- Keep your KYC updated to avoid extra fees.
Final Thoughts
Reducing your Demat AMC is one of the easiest ways to improve your net investment returns. By switching to a zero-AMC broker or negotiating with your current one, you can save hundreds or even thousands of rupees every year. In 2026, with so many competitive brokers offering lifetime free accounts, there is no reason to continue paying high AMC.
Take action today — review your current Demat charges, compare brokers, and move to a more cost-effective plan. Small savings in charges compound significantly over time and make a big difference to your long-term wealth creation.
Frequently Asked Questions (FAQs)
Q: Can I completely avoid Demat AMC?
A: Yes. Many brokers like Zerodha, Groww, and Upstox offer lifetime zero AMC plans.
Q: Is it worth transferring my Demat account to save AMC?
A: Yes, especially if your current AMC is ₹500 or more per year. The transfer process is simple and usually free.
Q: Will closing my old Demat account affect my credit score?
A: No. Closing a Demat account does not impact your CIBIL score.
Q: How long does it take to transfer shares to a new broker?
A: The Demat transfer process usually takes 7 to 15 working days.
Q: Can I have multiple Demat accounts?
A: Yes, but it is better to consolidate them to reduce AMC and simplify tracking.
Start optimizing your Demat account today. Reducing unnecessary charges is one of the smartest financial habits you can develop as an investor.