What is AMC in Demat Account – Charges, BSDA & How to Avoid Them in 2025

Understanding Annual Maintenance Charges (AMC) in Demat Accounts

When opening a Demat account, many investors focus on brokerage fees but overlook another key cost—Annual Maintenance Charges (AMC). Over time, AMC can quietly impact your investment returns, especially if you’re a passive or long-term investor.

In this blog, we’ll explain what AMC is, how it’s calculated, and how you can minimize or avoid it with platforms like One Solution.

What is AMC in a Demat Account?

Annual Maintenance Charges (AMC) are yearly fees levied by Depository Participants (DPs) to maintain your Demat account. This fee covers the cost of managing, securing, and servicing your account.

Even if you don’t make any trades during the year, AMC may still be charged.

Average AMC Rates in India












What is BSDA?

Basic Services Demat Account (BSDA) is a special category for small investors. If your holdings are below ₹2 lakh, you may be eligible for reduced or zero AMC.

However, BSDA has limitations:

• Fewer statements and alerts

• Limited services

• No access to advanced tools or F&O

When AMC is Charged

• Charged annually (some brokers charge quarterly)

• Charged even if the account is inactive

• Some brokers charge upfront at account opening

How to Avoid or Reduce AMC

1. Choose Brokers with Zero or Low AMC

Many modern platforms, like One Solution, offer free AMC for the first year or minimal charges after.

2. Check for Lifetime Free AMC Offers

Occasionally, brokers run promotional campaigns offering zero AMC for life.

3. Opt for BSDA (if eligible)

If your portfolio is under ₹2 lakh, consider converting to a BSDA account.

4. Close Unused Accounts

If you have multiple Demat accounts, close inactive ones to avoid paying AMC on each.

AMC at One Solution

At One Solution, we offer:

• Zero AMC for the first year

• Minimal AMC after that (one of the lowest in the industry)

• No hidden platform or technology charges

• Transparent pricing with full customer support

Final Thoughts

While AMC may seem like a small fee, it adds up—especially if you’re not actively trading. Always check the AMC structure before opening a Demat account and choose a platform that offers fair and transparent pricing.

With One Solution, you save more and grow faster. Open your free Demat account today.