Direct deposit in Canada: how to set it up for pay, CRA and benefits

How direct deposit works

Direct deposit sends money from a payer’s account straight to yours. Payments Canada describes salaries and government payments as the most common examples.

To sign up, you give the payer your banking information. Payments Canada calls it a GPS for the payment: it guides each deposit from their account to yours. You need three numbers:

• Transit number: 5 digits that identify your branch.
• Institution number: 3 digits that identify your bank.
• Account number: the number of the account you want paid into.

Our transit number note explains how to read each one. Since 2018, Payments Canada rules have required qualifying banks to make these deposits available within two hours of each exchange deadline on the payment date, which is what makes same-day payroll possible.

Void cheque or direct deposit form?

Most payers accept either. Both show the same three numbers. The difference is format: a void cheque is a cheque marked VOID, while a direct deposit form is a PDF your bank fills in with your name and account details.

Our void cheque note shows where each bank keeps its PDF in the app. RBC says your employer needs your account, transit and institution numbers, such as a voided cheque. National Bank says its specimen cheque is usually all an employer needs, and Desjardins offers a payroll enrolment form you can hand over instead.

Setting it up with your employer

Some banks skip the paperwork. In the TD app, the Direct Deposit Info screen lets you switch your pay to TD with listed employers, or download a form if yours isn’t listed.

CRA direct deposit for refunds and benefits

The CRA can pay you by direct deposit. It offers three ways to sign up or change your account, and it no longer accepts changes by phone.

If you sign up through your bank, the CRA asks that you’ve already filed a tax return. TD and Desjardins are among the banks that let you do it from online banking. If a payment is missing, the CRA says to wait 10 business days past the payment date before you contact it.

CPP, OAS and EI through Service Canada

The CRA doesn’t run CPP, OAS or EI, so changing your CRA details won’t move these payments. Each program has its own route.

• OAS: in My Service Canada Account, select Profile on your OAS dashboard, then Manage my payment destination. Changes can take up to 30 days, so make them at least 30 days before your next payment. If you get CPP too, you can share the same details.
• CPP: request a callback, call Service Canada or visit a Service Canada Office.
• EI: request a callback, call the Service Canada call centre or visit an office. It can’t be changed in My Service Canada Account.

Service Canada asks for your social insurance number, your bank’s name, the branch transit number and your account number. You can also mail the Canada direct deposit enrolment form with a void cheque, but it could take up to 3 months, and you’ll get cheques until it’s processed. For help with the form, call 1-800-593-1666.

Switching banks without missing a payment

Moving to a new chequing account or high-interest savings account means updating every payer. Payments Canada says to tell each one as soon as your banking details change, and notes that some banks offer to do it for you.

If a deposit you don’t recognize appears, Payments Canada says to contact your bank so it can investigate. You can open yourself to legal action if you keep money that isn’t yours.