If you receive a federal government cheque of any kind, you should know that change is in the air—you’ll soon be making fewer trips to the bank. Between now and April 2016 the government will phase out paper payments in favour of direct deposit.

Over 300 million government payments are made annually. 79 per cent of those payments are already deposited directly into bank accounts. The other 21 per cent, 58 million cheques, still must be printed and mailed, then deposited at a bank counter or ATM by Canadians and Canadian businesses.

A paper federal government cheque costs 82 cents to produce. A direct deposit, on the other hand, costs only 13 cents to process.

Many people who receive cheques from the government have experienced mail-slowdowns or unforeseen circumstances that delay their payments. Direct deposits are faster, more reliable and more secure as there is no risk of a payment being lost, stolen or damaged. Neither can payments be delayed, meaning funds are immediately available either for spending or gaining interest.

Direct deposit is also flexible. Those who receive more than one type of payment—for example Canada Pension Plan payments and an income tax refund—can, if they wish, opt to have their money deposited into different accounts.

These changes to how the government delivers payments to Canadians are also cost effective. Factoring in the costs of the changes, beginning in 2014—2015, savings to taxpayers will amount to an incredible $17 million yearly.

As a bonus, people who lead busy lives, or live in rural areas, will notice this change frees up more time in their already pressured schedules.

If you’re currently receiving a federal government cheque, and would like to move into direct deposit, visit www.directdeposit.gc.ca to enrol. You may also visit Service Canada, or another federal government office.

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The audio version of Garry's August 26, 2013 op-ed column can be heard by clicking here