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Canajun Finances Home » Public Service: Government Cheques Going Away

Public Service: Government Cheques Going Away

I was contacted by an agency about posting something here about the fact that Government Cheques will be going away very soon (April 1, 2016), and they included a blurb about it. My regular readers know my opinions on Guest Posts, however, given this is somewhat Public Service, I will publish this one. Remember I didn’t write this, nor do I necessarily agree with all the statements in it. You should really get your government cheques direct deposited (unless you don’t have a bank account, then I am not quite sure what you can do, does it direct deposit to your mattress?).

Life of a Government Cheque
Journey of a Government Cheque

Federal payments by direct deposit are coming your way!

When you consider that it costs approximately 83 cents for the federal government to issue payments by cheque and around 11 cents for direct deposit, you can understand the Government’s decision to eliminate cheques (except in exceptional circumstances) as of April 1, 2016. After that date, all payments made by the federal government including Old Age Security, Canada Pension Plan, GST/HST payments and Tax refunds to name a few will be made by direct deposit.

The majority of Canadians have already enrolled for direct deposit. If you’re one of a dwindling minority who hasn’t done so yet, here’s some information that may help you get on board.

How direct deposit works

With direct deposit, you designate a bank account and authorize the deposit of specific payments directly into that account. Your privacy is assured and your funds will be electronically transferred directly into your account – it is secure and reliable.

How to enroll for direct deposit

You can get the forms online but you don’t need a computer or access to the Internet. You’ll find the forms at your local Service Canada Centre and your financial institution. The latter will even help you fill it out. If all of your cheques are to be deposited in one bank account, you only need to fill out one form that takes just minutes to complete. Once you’ve enrolled, you can track all deposits made to your account and continue your bill-paying by going to the bank if you like as well as all your other banking routines.

There are lots of reasons to like it – Benefits of direct deposit

Direct deposit is:

  • Fast. The money is guaranteed to be in your bank account on time.  That’s especially important if you have arranged automatic withdrawals to pay rent, property taxes, hydro, etc.
  • Secure. There’s no risk of your payment being delayed, misplaced, lost, stolen, or damaged.
  • Convenient. The money is in your account when needed even if you’re away from home on a holiday or unable – for any reason – to get to the bank right away.
  • A time-saver. There’s no need to adjust your schedule (picking up the kids, attending classes, visiting the doctor, etc.) to accommodate banking hours and there’s no need to wait in line for a teller or ATM either.
  • Easily Managed. If you receive more than two or more payments, for example the Universal Child Care benefit and EI, they can be deposited in one account or in different ones – even at different banks.
  • Designed to save taxpayers money. The government estimates that direct deposit will save taxpayers about $17 million each year.

More information is available

Visit your bank or other financial institution or call toll-free 1-800-O-Canada (1-800-622-6232). You can also find more information, including a short informative video, at Public Works and Government Services Canada’s website:

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