Canadians heading to the bank to save or invest their tax refund: Scotiabank study

TORONTO, April 26, 2013 /CNW/ - According to a Scotiabank survey conducted by Harris/Decima, Canadians who expect to get a tax refund (62%) say they will deposit or reinvest it (33%), pay off debt (20%) or pay bills (11%).

This year, however, significantly fewer Canadians plan to use their tax refund to pay off debt (20% vs. 34% in 2012), while 11% of Canadians will use it to pay bills (up from 1% in 2012). Meanwhile, more people said they will use their tax refund to contribute to their RRSPs/RSPs (4% vs. <1% in 2012)

"Canadians are continuing the trend of using their tax refund effectively by building their savings or paying off debt," said Mike Henry, Senior Vice President of Retail Payments, Deposits and Lending at Scotiabank. "For those who are uncertain of how to make the most of their refund, now is a perfect time to meet with their financial advisor to see which options will help them get closer to achieving their financial goals."

Other highlights: (among those expecting a return)

• Using tax refunds for a vacation increased this year (7% vs. 5% in 2012), while shopping went down (5% vs. 10% in 2012);
• Women (7%) are more likely than men (2%) to put their tax refund toward RRSPs/RSPs;
• Canadians aged 65+ (42%) are more likely to not expect a tax refund than younger Canadians.

Methodology
Data were collected by phone using Harris/Decima's national telephone omnibus (tVox). A total of 1,001 surveys were collected from April 4th-7th, 2013 with a margin of error of +/-3.1 percentage points 19 times out of 20. The data were weighted to be reflective of the Canadian general population based on the Canadian Census.

About Scotiabank
Scotiabank is a leading multinational financial services provider and Canada's most international bank. With more than 82,000 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. In December 2012, Scotiabank became the first Canadian bank to be named Global Bank of the Year and Bank of the Year in the Americas by The Banker magazine, a Financial Times publication. With assets of $736 billion (as at January 31, 2013), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.

Image with caption: "Annual Income Tax Refund Poll: Plans for use of income tax refund among those expecting a return, 2013 vs. 2012. (CNW Group/Scotiabank - Products & Services)". Image available at: http://photos.newswire.ca/images/download/20130426_C8934_PHOTO_EN_26036.jpg

Image with caption: "Scotiabank Annual Income Tax Refund Poll: Plans for use of income tax refund among those expecting a return, by Province. (CNW Group/Scotiabank - Products & Services)". Image available at: http://photos.newswire.ca/images/download/20130426_C8934_PHOTO_EN_26038.jpg

SOURCE: Scotiabank

Media inquiries:
Patty Stathokostas
Scotiabank
416.866.3625
[email protected]