Paying off debt, depositing or reinvesting trend as top two uses for 2011 tax refunds

TORONTO, April 26, 2012 /CNW/ - According to a recent Scotiabank survey conducted by Harris/Decima, almost half of Canadians plan to use their 2011 tax refund to either deposit or reinvest (23 per cent) or pay off debt (22 per cent), while another twenty-five per cent do not expect a tax refund this year.

"This is similar to what we saw last year, with Canadians looking at building their savings or paying off debt as the top two options as they receive their tax refund," said Mike Henry, Senior Vice President of Retail Payments, Deposits and Lending, Scotiabank. "It's important to remember that periodic lump sums, like a tax refund, can always be put toward things like paying off a credit card balance, a one-time mortgage payment, topping up an RSP or depositing into a TFSA. It doesn't matter what the size of the refund is, every dollar helps when it comes to savings or paying down debt."

At the same time, just under half of Canadians (46 per cent^*) report having a financial advisor.

"We'd like to see more Canadians getting advice on how to make the most of their money, and the financial experts in our branches are there to help," said Henry.  "The key is to know what's important to you and to have a plan.  Whether your tax refund is $100, $1000, or even more, it's worth setting up a meeting with one of our advisors who can give you options on how to make that money work for you based on your unique circumstances."

Other highlights:

• Canadians living in Ontario are the most likely to deposit their tax refund in the bank (18 per cent)
• Canadians with a household income of $100K+ are most likely (33 per cent) to deposit or re-invest their income tax refund

Methodology
The data was gathered between April 4th through April 9th, 2012 through Harris/Decima's weekly teleVox, the company's national omnibus survey. Results are based on a sample of 1,005 Canadians, and the corresponding margin of error is ±3.1%, 19 times out of 20.

About Scotiabank
Scotiabank is one of North America's premier financial institutions and Canada's most international bank. With more than 77,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. With assets above $637 billion (as at January 31, 2012), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com

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^* The Scotiabank Investment Study was conducted online for the second consecutive year using Harris/Decima's online panel. A total of 1,021 completed surveys were collected from a random sample of panel members across Canada. The study was conducted from December 7th to December 21st, 2011.