Tips on how to make use of your tax refund

1. Pay down your RRSP loan or make your 2010 RRSP contribution now

2. Pay down credit card debt
(interest on some credit cards can eat away at your savings. Reduce the cost of credit by using your tax refund to reduce or pay down your credit card balances, targeting the highest rates first).

3. Lump sum mortgage payment
(if you have a mortgage, it is a good idea to use your tax refund to make a lump sum payment. Applied directly to your principal, a lump some payment could save you significant dollars in interest costs over the life of the mortgage).

4. Top-up your TFSA
(if you are not carrying any extra debt then make your refund work for you. Contributing to a Tax-Free Savings Account (TFSA) can let you grow your money tax free. Even if you maxed out your TFSA contribution in 2009, you have room for an additional $5,000 this year).

5. Save for education
(an education can be an expensive thing. Contributing to a Registered Education Savings Plan (RESP) can help alleviate some of the pressure that all parents feel when planning for their children's future. Consider opening an RESP using your income tax refund. A $2,500 dollar contribution to an RESP can earn a $500 grant from the government. Maximize your contributions every year and you could earn up to $7,200 in lifetime grants for every child).

Bank of Canada says rate increase may be coming as soon as June 1st.

The Bank of Canada signaled Tuesday that a half point rise in the overnight rate could happen as early as the June scheduled rate announcement. Canadians may even be hit with a 1/2 point rate increase at the next announcement June 1st. The premature move, a month ahead of the scheduled July increase, is due to a stronger than expected economic recovery. A rate hike in June would position Canada 1st amongst the G7 countries to raise rates.

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