What Types of Direct Deposits Qualify for Bank Account Welcome Bonuses?

What Is a Direct Deposit?

A direct deposit is an Electronic Funds Transfer (EFT) directly into a person’s bank account. No need to deposit a cheque or wait!

This method is often used by employers to pay wages and by governments to distribute social benefits.

This electronic payment method can also help you earn valuable welcome bonuses when you open a chequing account with a bank. For example, the TD All-Inclusive Banking Plan allows you to receive, under certain conditions, a cash bonus of several hundred dollars, deposited directly into your bank account. One of the conditions is to set up a direct deposit.

Therefore, here are the types of direct deposits accepted by financial institutions.

Your Employer

This is the easiest way! When you were hired, you had to provide a void cheque to your employer. Then, every two weeks, you receive your salary deposited into your bank account. This counts as a direct deposit.

It also includes your retirement benefits from your private pension plan.

Canadian Government Benefits

The Government of Canada offers many benefits that can be paid by direct deposit. This includes:

• Employment Insurance Benefits
• Canada Revenue Agency (Tax Refund)
• Old Age Security Benefits
• Canada Pension Plan (CPP) Retirement Pension
• Veterans Benefits
• Canada Child Benefit
• Goods and Services Tax/Harmonized Sales Tax Credit

Government Benefits from Quebec and other Canadian Provinces

Here is an example of direct deposits from provincial governments in Canada that count as a direct deposit:

• Revenu Quebec (Tax Refund)
• Workers’ Compensation Benefits (CSST)
• Quebec Parental Insurance Plan (QPIP)
• Compensation for Victims of Criminal Acts (IVAC)
• Solidarity Tax Credit
• Advance payments of tax credits related to the work premium, for childcare expenses, for home support for seniors, for caregivers, and for infertility treatment
• Housing Allowance Program
• Ontario Disability Support Program (ODSP)
• Ontario Trillium Benefit
• Various benefits for financial assistance, employment assistance, etc.

Get a Welcome Bonus Through Direct Deposits

Many financial institutions in Canada offer great incentives when opening a new bank account. They vary and can include cash bonuses, reward points, gift cards, electronic products, enhanced interest rates, or rebates on banking fees.

To take advantage of these offers:

• Compare offers with a bank account comparison tool: before choosing a bank, review the promotions available for new customers;
• Read the fine print: make sure you understand the conditions associated with the bonuses, such as minimum deposit periods or required amounts.

Read our article on the best checking account opening offers right now!

After opening your checking account, the institution asks you to set up one or two simple operations such as:

• A recurring direct deposit (like the types above) at least once a month, for a few consecutive months
• Two pre-authorized debits (such as Hydro-Quebec and Bell, for example) of at least $50 per month, for a few consecutive months
• A bill payment of at least $50 (such as your mobile provider) through your online banking

These few minutes and a little patience can earn you several hundred dollars in bonuses!

Bottom Line

Whether you receive your salary, pension, or government benefits, these incomes already exist. Take advantage of them to make them work harder by directing them to an account that rewards you generously!

How to Sign up for Direct Deposit

To sign up for direct deposit, you generally need to provide your banking information, such as your bank account number, transit number (5 digits), and financial institution number (3 digits). Here are the steps to sign up:

• Obtain a direct deposit form or void cheque: you can often find these forms online or your void cheque in your profile on your bank’s website or obtain them directly from your employer or the government.
• Provide your banking information: make sure to provide the correct numbers to avoid any delays in payment processing.
• Return the completed form to your employer, the government, or the institution.