FinancialFebruary 17, 20268 min read

How to Register for CRA Direct Deposit: Get Your Refund

By WelcomeAide Team

Person holding a Canadian cheque and a phone showing a banking app with direct deposit setup

What Is CRA Direct Deposit?

CRA direct deposit is a free service that sends your tax refunds, benefit payments, and credits directly into your Canadian bank account. Instead of waiting for a cheque in the mail (which can take weeks), the money appears in your account within days of being issued.

For newcomers to Canada, direct deposit is especially important because:

You may be moving frequently and could miss mailed cheques
It's faster — refunds arrive in as few as 8 business days if you file electronically with direct deposit, compared to 4-6 weeks for a mailed cheque
All your CRA payments come to one place — tax refunds, GST/HST credits, Canada Child Benefit, Climate Action Incentive, and more

Canadian bank branch exterior with a newcomer entering to open an account

What You Need Before You Start

To set up direct deposit, you need:

A Canadian bank account — chequing or savings at any Canadian financial institution
Your banking information:

Branch/transit number — a 5-digit number identifying your bank branch
Institution number — a 3-digit number identifying your bank (e.g., 001 for BMO, 002 for Scotiabank, 003 for RBC, 004 for TD, 010 for CIBC)
Account number — your personal account number (usually 7-12 digits)

Where to find these numbers: Look at the bottom of a personal cheque — the numbers appear from left to right: transit number, institution number, account number. If you don't have cheques, you can find this information in your online banking app under "account details" or by asking your bank.

A Note About Void Cheques

Some registration methods ask for a "void cheque." This is simply a blank cheque with "VOID" written across it. It provides your banking information without being usable as an actual cheque. If you don't have cheques, most banks can provide a direct deposit form or pre-authorized debit form that serves the same purpose.

How to Register: Four Methods

Method 1: Through My CRA Account (Recommended)

This is the fastest and most convenient method:

Log in to My CRA Account at canada.ca/my-cra-account
Click on "Personal information" in the left menu
Select "Direct deposit"
Click "Set up direct deposit" or "Change direct deposit"
Enter your bank's transit number (5 digits), institution number (3 digits), and account number
Confirm the information and submit

The change takes effect immediately for future payments. If a payment is already being processed, it may still come as a cheque.

Method 2: Through Your Online Banking

Many Canadian banks allow you to set up CRA direct deposit directly through their online banking:

Log in to your bank's online banking or mobile app
Look for a section called "Direct deposit" or "Government deposits"
Follow the prompts to link your account to the CRA
You may need to enter your SIN to verify your identity

This option is available at most major Canadian banks including TD, RBC, Scotiabank, BMO, CIBC, and National Bank.

Method 3: By Phone

Call the CRA at:

1-800-959-8281 (Individual tax enquiries)
1-800-387-1193 (Benefit enquiries)

Have your SIN, date of birth, and banking information ready. A CRA agent will set up direct deposit for you over the phone. Be prepared for long wait times — calling early in the morning or mid-week tends to have shorter waits.

Diagram showing where to find transit, institution, and account numbers on a Canadian cheque

Method 4: By Mail

Download and complete the Direct Deposit Enrolment Form from the CRA website or your bank. Attach a void cheque and mail it to your tax centre. This is the slowest method and can take several weeks to process.

What Payments Come Through Direct Deposit?

Once you set up direct deposit with the CRA, the following payments will be deposited automatically:

Income tax refunds — from your annual T1 return
GST/HST credit — quarterly payments (January, April, July, October)
Canada Child Benefit (CCB) — monthly payments for eligible families with children
Climate Action Incentive Payment — quarterly payments
Canada Workers Benefit — advance payments if eligible
Provincial benefits — many provincial credits administered by the CRA
OAS and CPP — if you are eligible for Old Age Security or Canada Pension Plan (these are administered by Service Canada but use the same direct deposit system)

Important Notes for Newcomers

Joint Accounts

You can use a joint bank account for direct deposit. The account does not need to be solely in your name. However, the CRA recommends using an account where you are a primary holder.

Changing Banks

If you switch banks (which newcomers often do after their first year as they find better account options), remember to update your direct deposit information with the CRA. If the old account is closed before the CRA sends a payment, the payment will be returned and the CRA will issue a cheque instead — which can delay things significantly.

Multiple CRA Programs

Setting up direct deposit once covers all CRA payments. You do not need to set it up separately for GST/HST credits, CCB, and tax refunds — one registration covers everything.

Service Canada vs. CRA

Direct deposit for Employment Insurance (EI) benefits is managed by Service Canada, not the CRA. If you need EI direct deposit, you must set it up separately through your My Service Canada Account at canada.ca/my-service-canada-account.

Troubleshooting Common Issues

Payment went to an old account: Update your information as soon as you change banks. If a payment bounces, the CRA will mail you a cheque to your address on file.
Direct deposit not working for one payment type: Occasionally, a specific payment may be issued as a cheque if it was already in process when you enrolled. The next payment should come via direct deposit.
Wrong banking information entered: If you entered incorrect numbers, the payment will fail and be returned. Log in to My CRA Account and correct the information immediately.
Bank account is in another country: CRA direct deposit only works with Canadian bank accounts. If you have moved abroad and don't have a Canadian account, you will receive cheques by mail.

Security Considerations

Direct deposit is actually more secure than receiving cheques by mail. Cheques can be lost, stolen, or intercepted. With direct deposit:

The money goes directly to your verified bank account
There is no physical document that can be stolen from your mailbox
You can verify receipt immediately through your banking app

However, be vigilant about scams. The CRA will never ask you to set up direct deposit by clicking a link in an email or text message. Always go directly to canada.ca/my-cra-account by typing the URL yourself.

How Long Until My First Direct Deposit?

After you enrol:

My CRA Account or online banking: Takes effect within 2-3 business days
Phone: Takes effect within 5 business days
Mail: Takes 4-6 weeks to process

Your next scheduled CRA payment after enrolment is processed will be deposited directly. If you just filed your tax return and are expecting a refund, having direct deposit set up before you file means you'll get your refund much faster.

Setting up CRA direct deposit takes less than five minutes and ensures you receive your money quickly and securely. It's one of the easiest steps you can take to make your financial life in Canada smoother.

Beyond Refunds: Other CRA Payments You'll Receive by Direct Deposit

While registering for CRA Direct Deposit is essential for receiving your tax refund quickly, its importance extends far beyond just that annual payment. The Canada Revenue Agency uses direct deposit to deliver a variety of crucial benefits and credits that many newcomers are eligible for, helping to support your financial well-being in Canada.

Some of the key payments you'll receive via direct deposit include:

GST/HST Credit: This is a tax-free quarterly payment that helps individuals and families with low and modest incomes offset all or part of the goods and services tax/harmonized sales tax (GST/HST) they pay. Eligibility is determined when you file your income tax return, even if you have no income to report. You can learn more about this credit on the official CRA GST/HST credit page.
Canada Child Benefit (CCB): If you have children under 18, the CCB is a tax-free monthly payment made to eligible families to help them with the cost of raising children. This is a vital support for many families settling in Canada. For details on eligibility and how to apply, visit the CRA Canada Child Benefit page.
Provincial and Territorial Programs: Many provinces and territories also have their own benefit programs that are administered by the CRA and delivered via direct deposit. These can include various tax credits, housing benefits, or energy rebates.

Ensuring your direct deposit information is up-to-date with the CRA means you'll receive these regular payments without delay, directly into your bank account. To explore all potential benefits you might be eligible for as a newcomer, check out our Benefits Finder. For a deeper dive into understanding your tax obligations and entitlements, our Tax Guide is an invaluable resource.

What to Do If Your Direct Deposit Information Changes or Fails

Life in a new country often involves changes, and sometimes your banking details might be among them. It's crucial to keep your direct deposit information with the CRA current to avoid delays or issues with your payments. If you change banks, close an account, or simply need to update your details, you can do so easily through your CRA My Account online, by phone, or by mail. Updating promptly ensures uninterrupted receipt of your refunds and benefits.

What if a direct deposit payment fails? This can happen for several reasons, such as incorrect banking information provided to the CRA, a closed bank account, or even a technical error. If a payment fails, the CRA will usually attempt to re-issue it or send a cheque by mail to the address on file. If you suspect a payment has failed or is missing, the first step is to check your CRA My Account for any messages or status updates. Next, contact your bank to confirm there are no issues on their end. Finally, if you still can't resolve the issue, contact the CRA directly.

For newcomers, managing finances and understanding Canadian banking can be...

Related Resources

WelcomeAide Tools

WelcomeAide Blog — browse all newcomer guides and updates
Tax Guide — understand taxes, filing deadlines, and common credits
Banking Guide — compare newcomer banking options and account types
Cost Calculator — estimate monthly living costs in Canada
Benefits Guide — find federal and provincial financial supports