What are the benefits of direct deposit for OAS and CPP payments?


Quick Answer

The benefits of direct deposit for Old Age Security and Canada Pension Plan include convenience, speed and security of benefit payments, reports Service Canada. Individuals can request direct deposit when they first apply for benefits. Those already receiving benefits can apply online, in person or by phone or mail.

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Full Answer

When the government of Canada uses direct deposit to pay OAS and CPP benefits, the funds go directly into recipients' bank accounts without the delay and risk of mail delivery, according to Service Canada. Direct deposit precludes the possibility of the payments becoming stolen or lost. To sign up for direct deposit, pensioners need their Social Insurance Number and the numbers from the bottom of a check corresponding to their financial institution, branch and bank account. If they do not have a check, they can obtain this information from the financial institution.

Those initially applying for OAS and CPP benefits are able to sign up for direct deposit by filling in the appropriate section on the application, advises Service Canada. Those already receiving benefit payments can create or log into their My Service Canada Accounts and update their payment information. Alternatively, they can apply for direct deposit using the phone number provided on the ServiceCanada.gc.ca website or download and print out a direct deposit enrollment request form and mail it in. Individuals can also sign up for direct deposit in person at a local Service Canada Center.

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