Gift Cards: A Convenient Choice, but Beware of Expiry Dates
Gift cards can be a great option when you're unsure what to get for that picky friend or relative this Christmas. However, it's important to note that these cards can quickly lose their value. According to the Gift Card And Voucher Association, over £7 billion will be spent on gift cards this year. But many of them devalue over time and expire within a year. Additionally, if a retailer goes bankrupt, your gift card could become useless. Here, we break down the best and worst gift cards and provide tips on how to protect your cash.
Get Organized to Make the Most of Your Gift Cards
If you find yourself accumulating gift cards, take some time on Boxing Day to assess your collection. Check the expiration dates on each card and set reminders on your phone to use them before they become invalid. Many gift cards are only valid for 12 months, and some retailers start the countdown from the date of purchase. So, if you receive a gift card from Grandma in October, you may have as little as ten months to use it. Keep in mind that experience day gift cards often have two deadlines: one for using the card and another for scheduling the activity. Additionally, be aware that physical and e-gift cards may have different terms and expiration dates.
Cash is a Foolproof Option
While gift cards can be a thoughtful gesture, if you want to ensure your loved ones receive their gifts, cash is the way to go. Include a card explaining that you understand their forgetfulness and that the cash will never expire. If you're feeling particularly sensible and the gift is for a young person, consider putting the money into a savings account for them. They may not appreciate it during the holiday season, but they'll thank you when they turn 18.
Spend It Quickly: Expiry Dates and Exceptions
While there are a few gift cards like Starbucks, Theatre Tokens, and the One4all gift card that do not have an expiry date, they are the exception rather than the rule. However, even these cards often come with caveats. For example, the One4all card may not officially expire, but an "inactive balance charge" of 90p per month will be deducted if any funds remain 18 months after purchase. This means that a £10 gift card would be completely wiped out within a year of the fee being applied. It's also worth noting that forgotten gift cards can lose value due to inflation. A £100 Ikea gift card from Christmas 2018 may still be valid, but it's now only worth about £80 of Swedish furniture. Furthermore, if a retailer goes out of business, your gift card will not be protected, even if it's still within the expiration date.
Expiry Dates for Popular Gift Cards
Here's a breakdown of the expiry dates for some popular gift cards:
- JD Sports – 12 months
- Ryanair – 12 months
- Ticketmaster – 12 months
- Pandora – 12 months
- Sunglasses Hut – 12 months
- Westfield – 12 months
- Pizza Hut – 24 months
- Ted Baker – 24 months
- Argos – 3 years (2 years on some e-gifts)
For some gift cards, the countdown starts on the date of purchase and does not renew. Others renew with each use. Here are a few examples:
- Costa – 12 months
- Vue – 12 months* (renews with each use)
- Greggs – 12 months
- Accessorize – 24 months* (renews with each use)
- Pizza Express – 24 months
- Boots – 24 months
- John Lewis – 24 months* (renews with each use)
- WH Smith – 24 months
- Asda – 24 months
- River Island – 5 years* (may reinstate unused balance on expired cards)
Finally, here are some gift cards that have no expiry date:
- Ikea
- Starbucks
- Theatre Tokens
- TK Maxx
- One 4 All (but charges 90p/month starting 18 months after purchase)
Remember, it's important to use your gift cards promptly to avoid losing their value. Take note of the expiry dates and enjoy your shopping!
