Setting up CRA direct deposit is one of the smartest financial moves you can make as a Canadian taxpayer. It ensures your tax refunds and government benefits are deposited directly into your bank account, eliminating the hassle of waiting for cheques in the mail and reducing the risk of lost or delayed payments. This guide will walk you through everything you need to know about CRA direct deposit, including how to set it up, the benefits, and important tips to keep your payments flowing smoothly.
What Is CRA Direct Deposit?
CRA direct deposit is a secure, electronic payment method used by the Canada Revenue Agency (CRA) to send your tax refunds and benefit payments directly to your bank or credit union account. This method is faster and more reliable than receiving payments by cheque, as it removes the risks associated with mail delays, lost cheques, or stolen payments.
Direct deposit is available for a wide range of CRA payments, including:
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Income tax refunds
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GST/HST credits
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Canada Child Benefit (CCB)
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Canada Workers Benefit (CWB)
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Provincial and territorial benefits.
How to Update Direct Deposit (Important)
Below is a summary of the main government payment schemes that use direct deposit, along with the responsible agency and how to update your information:
| Agency/Department | Payments Included | How to Update Direct Deposit |
|---|---|---|
| Canada Revenue Agency | Income tax refunds, GST/HST credits, CCB, CWB, provincial/territorial benefits | CRA My Account or your bank/credit union |
| Service Canada | CPP, OAS, EI | My Service Canada Account, mail, or in-person |
| Veterans Affairs Canada | Disability benefits, War Veterans Allowance, financial benefits, etc. | My VAC Account or mail |
Why Should You Use CRA Direct Deposit?
There are several compelling reasons to set up CRA direct deposit:
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Speed: Payments are deposited directly into your account, often a few days faster than receiving a cheque in the mail.
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Security: Direct deposit reduces the risk of lost, stolen, or misplaced cheques.
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Convenience: No need to visit a bank or ATM to deposit cheques.
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Reliability: Payments are not affected by postal strikes, severe weather, or other mail disruptions.
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Eco-friendly: Reduces paper waste by eliminating the need for cheques.
How to Set Up CRA Direct Deposit
Setting up CRA direct deposit is a straightforward process. Here are the main methods available:
Online Through CRA My Account
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Sign in to your CRA My Account.
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Select your Individual account.
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Go to the Profile section.
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Scroll to Direct Deposit and select Edit.
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Enter your banking information and save your changes.
You will need your bank account details, which can be found at the bottom of a personal cheque or through your online banking portal.
Through Your Bank or Credit Union
Many Canadian banks and credit unions allow you to set up direct deposit for CRA payments directly through their online banking platforms. Simply provide your consent, and your information will be updated with the CRA, usually within one business day. Do not close your old bank account until you confirm that your first payment has been deposited into the new account.
Important Notes
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As of March 24, 2025, you can no longer set up CRA direct deposit by phone or EFILE.
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If you can’t sign in to your CRA account, you may need to use another method or contact your bank for assistance.
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To update direct deposit for someone else, you must be their legal representative and use the Represent a Client feature in your CRA account.
What You Need to Set Up CRA Direct Deposit
To set up direct deposit, you will need the following information:
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Transit number (5 digits): This identifies your bank branch.
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Institution number (3 digits): This identifies your financial institution.
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Account number (7 digits or more): This is your personal bank account number.
You can find these numbers at the bottom of a void cheque or through your online banking portal.
Updating or Changing Your Direct Deposit Information
If you change your bank account or need to update your direct deposit information, follow these steps:
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Sign in to your CRA My Account.
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Go to the Profile section.
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Select Direct Deposit and Edit.
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Enter your new banking information and save your changes.
Do not close your old bank account until you confirm that your first payment has been deposited into your new account.
CRA Direct Deposit vs. Other Government Direct Deposit
Not all government payments are administered by the CRA. For example, payments such as Canada Pension Plan (CPP), Old Age Security (OAS), and Employment Insurance (EI) are managed by Service Canada. You must set up or update direct deposit for these payments separately, either through your My Service Canada Account, by visiting a Service Canada office, or by mailing in a completed direct deposit enrollment form.
CRA Direct Deposit for Businesses
Businesses can also benefit from CRA direct deposit. To set up or update direct deposit for your business:
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Sign in to your CRA My Business Account.
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Go to the Profile section.
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Select Direct Deposit and Manage Direct Deposit.
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Enter your business banking information and save your changes.
You can also set up direct deposit through your bank or credit union.
Common Issues and How to Resolve Them
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Missing or delayed payments: Contact the CRA or the relevant government department if you do not receive your payment when expected.
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Incorrect payment amount: Report any discrepancies to the department responsible for your payment.
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Receiving cheques after setting up direct deposit: Contact the issuing agency to ensure your direct deposit information is up to date.
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Change of address: Update your address with all government departments that issue your payments, even if your bank account information remains the same.
Frequently Asked Questions (FAQs)
1. How long does it take to set up CRA direct deposit?
Setting up direct deposit online through your CRA My Account or your bank is usually completed within one business day.
2. Can I use a joint account for CRA direct deposit?
Yes, you can receive CRA payments into a joint bank account, as long as the account is in the names of all recipients.
3. What should I do if I don’t receive my payment?
Contact the CRA or the relevant government department to report a missing or delayed payment.
Additional Tips and Resources
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Keep your banking and address information up to date with all government departments.
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Do not close your old bank account until you confirm that your first payment has been deposited into your new account.
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If you have power of attorney for someone, you can set up or update direct deposit on their behalf by submitting the appropriate forms to each government department.
Setting up CRA direct deposit is a simple, secure, and convenient way to receive your tax refunds and government benefits. By following the steps outlined in this guide, you can ensure that your payments are deposited directly into your bank account, saving you time and hassle. Don’t wait—set up direct deposit today and enjoy faster, more reliable access to your money.
