What Is AMC in Demat Account? Charges, Benefits & How to Reduce It

What Is AMC in Demat Account? Annual Maintenance Charges Explained

When opening a Demat account, one recurring term you’ll come across is AMC, or Annual Maintenance Charges. While the charges may seem small, over time they can add up—especially if you have multiple accounts or inactive holdings.

In this blog, we explain what AMC is, why it’s charged, how much it costs across brokers, and how One Solution helps you reduce or eliminate these charges.

What Is AMC in a Demat Account?

AMC (Annual Maintenance Charges) is the yearly fee that brokers charge to maintain your Demat account, even if no transactions are made. It covers the cost of:

• Holding securities

• Account statements and updates

• Regulatory compliance and reporting

• Backend infrastructure with the depository (CDSL/NSDL)

AMC is applicable once per year and is usually deducted directly from your trading account or bank mandate.

Why Do Brokers Charge AMC?

Every active Demat account is mapped to a Depository Participant (DP) like CDSL or NSDL. These DPs have operational costs to:

• Maintain client records

• Ensure seamless share transfers

• Deliver account statements and reports

• Manage security infrastructure

Your broker passes a part of these costs as AMC.

How Much Is AMC in India?
AMC varies depending on broker type:

Note: BSDA is available for investors with holdings below ₹2 lakhs and offers lower AMC or even zero.

AMC Comparison – Leading Brokers (2025)

How to Check and Manage AMC

1. Login to your Demat account dashboard

2. Go to your account settings or profile

3. Locate the “Annual Charges” or “AMC” section

4. Review your current plan and billing cycle

If you find your AMC high or recurring despite low activity, consider switching to a better alternative.

How to Reduce or Eliminate AMC

• Choose brokers with ₹0 AMC plans (like One Solution)

• Opt for BSDA if eligible

• Avoid opening multiple inactive Demat accounts

• Consolidate holdings into a single low-cost account

• Regularly review AMC terms before signing up

How One Solution Saves You AMC

At One Solution, we believe in transparent, investor-friendly pricing:

• ₹0 AMC for the first year

• Low AMC plans from the second year onward

• No hidden charges, no forced add-ons

• Assistance in BSDA conversion if eligible

• Support in closing high-AMC inactive accounts

Final Thoughts

AMC may seem minor, but over time, it can impact your net returns—especially if you’re maintaining multiple accounts. Choosing a broker with low or no AMC can lead to better portfolio efficiency and peace of mind.

Open your free Demat account with One Solution today and eliminate unnecessary charges.