We assume that gift cards are exactly what the name sounds like: presents to give other people.
But if you’re savvy with them, you could use them as a little gift to yourself, too. There are some sneaky ways that gift cards can help you save money on everyday spending, if you know how.
Check the expiry date – and don’t lose your gift card
The best way to use gift cards is to buy them when you need. Gift cards do eventually expire, so buying loads and hoarding them could result in you losing the cash you put on them. Check the date on any gift card – the minimum must be six months from date of purchase.
You also can’t return a gift card, so make sure you only buy one you know you will use. It’s treated like cash too, so if you have a physical gift card keep it somewhere safe because if you lose it, it’s like losing cash: no way to get it back.
If a gift card company goes bust
Another warning about gift cards – and why you should use them when you buy them – is that they’re not treated as ‘goods’ under the Consumer Rights Act. That means if the company goes under, you’re not entitled to a refund in the same way as with a physical product.
You can try to get a refund from your credit card company under a Section 75 claim or a chargeback request for those bought on a debit card or under the value of £100. Of course, you can also make sure to spend the card while the company is in the process of closing (and you might then nab some extra deals with closing-down sales). You can’t rely on this though – so, for these hacks, buy the card and use it straight away to guarantee that you’ll save money.
Buy discounted gift cards
Avoid buying discounted gift cards on sites like eBay. They are unregulated and could be scams – once you’ve paid your money, the gift card can arrive but will already have been used in full or in part, so you’re left with a useless gift card and lost cash.
There are regulated sites. MoneyMagpie likes CardYard, which verifies gift cards from sellers before they are issued to ensure you’re not scammed. You can pick up cards with around a 5% to 15% discount, for all sorts of retailers from Costa to B&Q, to Harvey Nicholls.
Buy gift cards with cashback
If you’re signed up to a cashback site like TopCashback, Quidco, or Swagbucks, check their gift card options. There are two ways to do this. First, you can convert your cashback to gift cards for a higher reward. For example, if you have £100 of cashback ready for payout, you could get a bonus on top if you convert it to a gift card first.
The amount varies between retailer. On TopCashback for example, most retailers offer around 10% bonus but some, like Harvester, Vintage Inns, and O’Neills offer 15%. On a £100 cashback payout, that’s £115 on your gift card, a bonus £15!
Buy annual subscription gift cards for discounts
One of the best ways to save money on regular services that you enjoy is to look at the annual subscription gift options. This does mean paying a large lump sum up front, but there are two benefits. First, you will save at least a month on the rolling monthly cost – usually more.
And second, these services often raise their prices significantly each year. If a service announces upcoming price hikes, get ahead of the game and buy an annual subscription gift card. It’ll lock in the cheaper price for the next year, saving you a lot of cash. Here are two of our favourites.
Spotify annual membership
If you have a Premium Spotify membership, you could save three months’ worth of subscription costs through their gift card. This is only applicable if you have your own Premium membership, as it’s not valid for Student or Family Plans. It must also be purchased in the country of the destination Spotify account – so make sure you buy a UK card if you are in the UK, or if you’re buying for someone abroad it must be purchased for redemption in their country.
A Spotify Individual Premium membership is £11.99 a month, or £143.88 a year. But the Spotify Premium Gift Card is only £99 – saving you £44.88 on your annual subscription, or around a third. You can buy the card online and redeem it straight away, or find physical cards in shops such as supermarkets if you prefer.
Disney+ annual gift subscription
Disney+ has been notorious for raising its prices year-on-year at quite a rate. You may already have an annual subscription paid for to beat the last price hike with several months left on it – but their gift cards don’t expire. The only condition of redemption is that you must register a new account to use the gift card. So, when your current subscription ends, you can set up a new account and redeem your gift card – purchased at today’s prices, and valid for the annual membership, whatever the new price is at the time you redeem the card.
A 12-month gift card gives you two months free, so that’s £129 instead of £155.88 at current Disney+ prices on the premium plan. The last price hike on the Premium Plan was by £2 a month, so if that happens again in the next year, you’ve saved an additional £24 by getting the gift card in advance.
Always check the gift card option first
Whenever you’re about to sign up to a new service, always check the gift option first. You can often find a better deal if you buy gift than direct – whether that’s free months, extra services, or a free gift to go with the product. Just remember to redeem within the expiry date. If there is no date listed on the card, then it cannot expire – so don’t let a retailer fob you off saying it has!
Some of the brands and websites we mention may be, or may have been, a partner of MoneyMagpie.com. However, we only ever mention brands we believe in and trust, so it never influences who we prioritise and link to.
