YOU CAN INVEST EVEN WITHOUT HAVING A DEMAT ACCOUNT OR A PAN CARD

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To be honest, I myself did not believe the statement that I have made in the heading. When you read the word Investment, the first thing that strikes your mind is the stock market, which is the place millions of people take part in active buying and selling of shares of companies. Now companies in order to raise funds for their business divide and portion out their company. These units are known as shares and these are the tools in which millions of people invest their money. But the major requirement for investing in stocks is the requirement of a Dematerialized Account or the "Demat Account" and most of the students do not possess such Demat accounts. 


                                                                                                                                                                 

Before conceptualizing a different mode of investment, I would like to emphasise on the need for investments by students. Investment is very essential in one's life. It provides a medium for you to put in your cash and multiply that annually and it also acts as a contingent fund for you in case of emergencies. As College students, it is very important that you invest some money so that it would multiply and will be useful for the future when you graduate.

Ok, so now you have made up your mind to invest your funds, but then you ask yourself, Where should I invest because I do not have a Demat Account and I am not confident enough to open a Demat account and enter the world of the stock market.

The most basic and trustworthy form of investment that you as a College student can make is by opening your own Fixed Deposit in a Bank. Fixed Deposits are reliable deposits and assure you the multiplication of the principal amount you have invested in it. The best part as a student is that you do not require a PAN Card to open a Fixed Deposit.




As per the latest RBI guidelines, investments up to Rs. 50,000 in Fixed Deposits do not require a PAN card and can be done through a simple KYC (Know Your Customer) process. Another important fact to note is that the interest amount that has been accrued in your account will not be subject to TDS (Tax Deduction at Source) and you can directly proceed to fill out Form 15 G/H annexed in the Schedule of Income Tax Act and get Tax Exemption benefits.

There are certain steps you must follow before the opening of your Fixed Deposit. Firstly, research various banks and find interest schemes which are useful for you. Secondly, inspect whether the bank is a Scheduled Bank as per the Banking Laws. A Scheduled Bank is much safer because they have insurance coverage on the deposits, which means that even though in a situation, the bank becomes bankrupt, your deposit amount will be safely returned back to you.

So, what are you waiting for? Start researching for suitable banks and open your Fixed Deposit.


Hope this article was insightful for most of my co-collegemates. Do put in your comments.

The author does not take any credits for the pictures uploaded on this article. All the pictures have been taken from Google and all rights rest with the uploaders of the pictures.

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