Information on Direct Deposit of Government Benefits & Payments
June 26th, 2013 - 9:29pm
Did you know that the Government of Canada issues close to 275 million federal payments every year? While 79 % of these payments are deposited directly into bank accounts, 21 % are still printed as cheques that must be deposit at bank counters or ATMs. That's an astounding 58 million cheques that need to be printed, mailed and processed each year.
While a cheque costs 82 cents to produce, a direct deposit works out to only 13 cents to process. Once all costs are considered, savings from Canadians switching to direct deposit will amount to an incredible $17 million each year beginning in 2014–2015, and it’s environmentally friendly.
Fast and convenient
Direct deposit is fast and convenient. Your money is quickly deposited into your account and immediately available to you—no matter what you’re doing or where you are. In fact, if you receive more than one type of payment, for example Canada Pension Plan payments and an income tax refund, they can be deposited into different accounts of your choosing.
Safe and secure
Direct deposit is reliable and safe. Unlike cheques, there is virtually no risk of your payment being lost, stolen or damaged.
Reliable and on time
Your payment will never be delayed due to unforeseen circumstances. As soon as the payment is issued, it is deposited into the account of your choice and may immediately begin to earn interest.
The Government of Canada will be increasing the use of direct deposit and phasing out cheques by April 2016.
For more information and to fill out your enrolment form visit: www.directdeposit.gc.ca