Gift cards are expected to account for 17% of holiday spending this year, up three percentage points from 2005. Such cards could bring holiday cheer to those hard-to-shop-for people on your list -- or leave them with the sour taste of expiration dates and nuisance fees.
Bank-issued gift cards, in particular, may be loaded with fees. American Express, Discover, MasterCard and Visa all offer these cards, and terms and conditions vary widely. Amex charges a $3.95 purchase fee; a Citi Prepaid MasterCard costs $9.95. Lose an Amex gift card and it will cost $5.95 for a replacement; replacing a Citi card costs $10.
After a year, Amex subtracts $2 a month as a maintenance fee if there's still a balance on the card. That's one fee Citi doesn't chargeÑbut it hits cardholders with a dozen others, including an ATM-withdrawal fee and even a fee for some balance inquiries.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
New federal rules call for an expiration date to appear on the front of each bank-issued card and for clear disclosure of any fees. Issuers must also tell consumers how they can get more information -- such as a toll-free number or Web site.
Cards issued by individual merchants may also carry fees, but usually not as many. And some states have passed laws to help prevent consumers from being left high and dry. Connecticut and California, for example, prohibit expiration dates and service fees on gift cards; other states, such as Louisiana and Maryland, set limits on fees and expiration dates.
In any case, be sure to read the fine print so that you know what you're buying -- and let the recipient know about the terms and conditions of using the card. It could spare you a lifetime of fruitcake revenge.
-
Take Charge of Retirement Spending With This Simple StrategyTo make sure you're in control of retirement spending, rather than the other way around, allocate funds to just three purposes: income, protection and legacy.
-
Here's How To Get Organized And Work For YourselfWhether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
-
Roth IRA Contribution Limits for 2024 and 2025Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to a Cheap Last-Minute VacationTravel It is possible to pull off a cheap last-minute vacation. Here are some tips to make it happen.
-
How to Figure Out How Much Life Insurance You Needinsurance Instead of relying on rules of thumb, you’re better off taking a systematic approach to figuring your life insurance needs.
-
Amazon Big Deal Days Is Coming! We’ve Got All the DetailsAmazon Prime To kick off the holiday season with a bang, Amazon Big Deal Days runs Tuesday, October 8 and Wednesday, October 9.
-
How to Shop for Life Insurance in 3 Easy Stepsinsurance Shopping for life insurance? You may be able to estimate how much you need online, but that's just the start of your search.
-
Five Ways to Shop for a Low Mortgage RateBecoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.
-
Retirees, It's Not Too Late to Buy Life Insurancelife insurance Improvements in underwriting have made it easier to qualify for life insurance, which can be a useful estate-planning tool.
