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Home > Managing your money > Planning > Investing basics > How do I set up a PAD?
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How do I set up a PAD? 

1.  Decide on the kind of payment, saving, or investment that you want to handle through a PAD.
 
2.  Record these details on the agreement form:
  • The account number from which the money will come
  • The amount you want taken from the account each month
  • The day of each month that the money is to be taken from your account.

Make sure that you get a copy of the agreement form to keep for your files.

Tip: If the amount that comes out of your account will change from month to month, such as a telephone bill, note this on your form. Your agreement should say that you must be told how much the bill will be several days ahead. That way, you can make sure that there is enough money in the account.
 
3.  In some cases, you may have to provide a blank cheque from your bank account to the company
you will be paying each month. This proves that the account is yours, by showing your account and
branch information. It also makes sure that they have the correct information. Write the word "VOID"
in ink across the cheque to prevent it from being stolen and reused.
 
4.  Each month, check your statements to make sure the amounts that have been taken from your
account are correct.

 

How do I cancel a PAD?

 
It’s very important to follow these steps to cancel a PAD, or you may find that money continues to be taken from your bank account.
 
1.  Contact the place where you do your banking and have the PAD stopped. Note the date that the last automatic payment will come out of your account.
 
2.  Contact the company that has been getting payments from you through a PAD. Tell them the debit will no longer be automatic. If you still owe money, explain how you will be paying in the future. Sometimes your bank will contact the company on your behalf.
 
3.  Check your account each month to make sure that money is no longer being taken out.

Tip: If you are changing banks or bank branches, it may be best to cancel the PAD. After cancelling, set up a new PAD with the new information. It’s often better than changing the instructions for a PAD.