How to Set Up Direct Deposit in Canada in 2026

Direct deposit is faster, more secure, and more reliable than waiting for a mailed cheque — yet a significant number of Canadians still receive CRA benefits, CPP, OAS, or even their paycheques by paper cheque. A mailed cheque from CRA takes 10–14 business days from the payment date to arrive. Direct deposit takes one business day. The setup process takes about five minutes and requires three numbers from your bank account: your transit number, institution number, and account number.

Those three numbers appear along the bottom of any cheque you write, encoded in the MICR font at the bottom of the page. If you do not have cheques, they are available through your online banking under account details, or by downloading a direct deposit form (sometimes also called a void cheque image) from your bank’s app or website. The numbers are the same regardless of which method you use to provide them. A void cheque is simply the most traditional way to share them.

The process differs slightly depending on who you are setting direct deposit up with — an employer, CRA, or Service Canada for CPP/OAS/EI — but the banking information required is identical in all cases.

What You Need for Direct Deposit

Three numbers identify your bank account for direct deposit purposes. All three are required; providing only two will result in a rejected setup or a returned deposit.

The institution number is a fixed 3-digit code assigned to each Canadian financial institution by Payments Canada: RBC is 003, TD is 004, Scotiabank is 002, BMO is 001, CIBC is 010, National Bank is 006, HSBC Canada was 016. Online-only banks have their own institution codes — Tangerine is 614, Simplii is 010 (uses CIBC’s code). Confirming the institution number against your bank’s published list before submitting avoids the most common setup error.

How to Provide Your Banking Information

A void cheque and a direct deposit form contain the same information — just presented differently. If your employer specifies one or the other, use what they ask for. If they accept either, the downloaded direct deposit form from your bank is the easiest option since it does not require a physical chequebook.

Setting Up Direct Deposit for Your Paycheque

Step 1: Contact HR or payroll. Ask your employer’s HR or payroll department for a direct deposit enrollment form. Most payroll platforms have a standardized form; some allow employees to enter banking information themselves through an employee self-service portal.

Step 2: Provide your banking information. Attach a void cheque or your bank’s direct deposit form. If the employer has an online enrollment portal, enter your transit number, institution number, and account number directly. Double-check all three numbers before submitting — a transposed digit in your account number will cause the deposit to reject.

Step 3: Allow 1–2 pay cycles. Most payroll systems process direct deposit changes before the next payroll run, but some require a full cycle. Your first payment after enrollment may still be issued as a cheque while the change is processed. The second payment will almost always be a direct deposit.

Step 4: Set up a split if supported. If your employer’s payroll system supports split direct deposit, request a second form to route a fixed dollar amount or percentage to a savings account. A 10–20% automatic split to a high-interest savings account or TFSA before the money hits your chequing account is one of the most effective savings strategies available — you adjust spending to what is left without a deliberate decision each pay period.

Setting Up CRA Direct Deposit

Setting up CRA direct deposit routes all CRA payments — income tax refunds, Canada Child Benefit, GST/HST credit, Canada Carbon Rebate, and other federal credits — directly to your bank account. Without it, CRA mails cheques, which take 10–14 business days after the payment date to arrive. CRA direct deposit payments arrive in one business day.

The bank portal option is worth highlighting: all major Canadian banks allow you to register your CRA direct deposit from within your online banking account, without logging into CRA’s website. The bank transmits your banking information to CRA on your behalf. The result is identical to setting it up through My CRA Account. Look for the option under your bank profile, settings, or a “Government payments” section.

CRA Direct Deposit Through Your Bank

Note that CRA direct deposit applies to one account only. If you want your tax refund and your CCB to go to different accounts, that is not currently supported — all CRA payments route to the single registered account.

Setting Up Direct Deposit for CPP, OAS, and EI

CPP retirement and disability payments, Old Age Security, and Employment Insurance are administered by Service Canada — a separate system from CRA. Setting up direct deposit for these payments requires registering through My Service Canada Account or calling Service Canada directly.

Service Canada direct deposit typically activates within one payment cycle of registration. If you are already receiving CPP or OAS by cheque, update your banking information before your next payment date to avoid a missed cycle.

Split Direct Deposit

Split direct deposit routes portions of your paycheque to two or more bank accounts automatically, without any action on your part after initial setup. Most modern payroll platforms — ADP, Ceridian Dayforce, Payworks, and others — support splits by percentage, fixed dollar amount, or a combination of both.

A common setup is directing 80–90% of each paycheque to your chequing account for everyday expenses and routing the remainder directly to a savings account or TFSA. Because the savings portion never touches your chequing account, you automatically calibrate your spending to what is left. This “pay yourself first” mechanism is more effective than a manual monthly transfer because it removes the decision point entirely.

Ask your HR or payroll contact whether split direct deposit is available and request the appropriate form if so. CRA and Service Canada direct deposit go to one account only — split deposit is a payroll-specific feature.

Troubleshooting Direct Deposit

If a direct deposit is returned by your bank — because the account number was wrong or the account was closed — most payers will issue a paper cheque as a fallback, but this can take 1–3 weeks. Update your banking information immediately if you switch banks to prevent returned deposits.

• Banking Basics Hub: Accounts, Transfers & Banking in Canada

Related Pages

• How to Void a Cheque in Canada
• How to Open a Bank Account in Canada
• Best No-Fee Chequing Accounts in Canada
• How to Switch Banks in Canada
• CRA My Account Setup Guide