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Cash is usually the better choice when you are unsure what the recipient likes or they may need the money for something specific. A gift card can be more personal when it is for a shop, restaurant or service they already enjoy and can conveniently use. Neither option wins for everyone: a 2025 U.S. holiday survey found that 56% preferred receiving gift cards and 48% preferred cash or checks, with respondents able to select more than one kind of gift.
At a glance
| Factor | Cash | Gift card |
|---|---|---|
| Spending freedom | Broad; the recipient chooses how to use it | Limited to the issuing retailer, service or card network |
| Personal signal | Can feel impersonal to some givers or recipients | Can show you know the recipient’s preferences when you choose well |
| Risk of a mismatch | Avoids being tied to an unwanted merchant | Recipient may dislike the merchant or find it inconvenient |
| Delivery | Digital transfers can be quick, but depend on compatible accounts or services | Can be given physically or digitally; check delivery and redemption terms |
| Terms and protections | Digital payment methods may have account terms | Expiration, fees and protections depend on the card, product and applicable law |
What does the evidence say about what recipients prefer?
There is no universal preference winner. The most directly relevant recent figures come from an Ipsos survey for Wells Fargo of 2,010 U.S. adults aged 18 and older, fielded online in English from October 30 to November 3, 2025. During the holiday season, 56% said they preferred receiving gift cards, 55% physical gifts and 48% cash or checks.
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Those percentages are overlapping preferences, not a ranking in which each person chose just one winner. Ipsos reports a credibility interval of ±2.5 percentage points for all respondents, adjusted to ±4.0 points for design effect. The results describe surveyed U.S. adults’ holiday preferences; they do not establish what every recipient wants year-round or prove that one kind of gift is best in every situation.
The giver figures also differ from the recipient figures: 65% preferred giving physical gifts, 54% gift cards and 34% cash or checks. That gap is a useful reminder that what feels satisfying to give is not necessarily what the other person would most like to receive.
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The figures are useful as a corrective to assumptions, not as a substitute for knowing the person in front of you. A preference question is not the same as a purchase test: the survey reports what adults said they preferred during a holiday season, rather than measuring how often a particular gift was redeemed or how satisfied each recipient was afterward. It also does not mean that a person who likes gift cards would reject cash. Because respondents could express more than one preference, the percentages should not be read as competing sides that add up to 100%.
The digital-cash answers show why the choice can feel complicated. In the 2025 survey, 65% agreed that digital cash lets them choose something they really want, and the same share said it is convenient; 62% said it takes the guesswork out of gifting. Yet 57% agreed that sending digital cash feels impersonal. These views can coexist: someone may value the freedom of money and still appreciate a personal gesture around it. Another 49% said they wanted digital cash but felt awkward telling the giver, which suggests that a recipient’s silence does not necessarily mean cash would be unwelcome.
These responses are about digital cash in particular, not every way of giving money. They also do not establish a universal etiquette rule. The practical takeaway is narrower: do not assume that your own comfort with giving or receiving money matches the recipient’s, and do not assume a gift card is automatically more thoughtful simply because it is tied to a merchant.
When is cash the better gift?
Choose cash when flexibility matters more than directing the gift toward a particular purchase. It is especially sensible if you do not know the recipient’s tastes, if the person may have a specific expense in mind, or if you cannot identify a merchant they reliably use.
- You are uncertain about their preferences. Cash lets them choose without requiring you to guess at a retailer, restaurant or service.
- You want to avoid a merchant mismatch. Money is not tied to a business the recipient might dislike or find hard to reach.
- They need maximum choice. Cash can be used broadly rather than within the limits of a particular gift card.
- You can deliver it in a way that works for them. A digital transfer may be convenient, but first confirm the recipient can use that payment method.
Cash can be especially helpful when the giver does not know what the recipient already owns, wants, or plans to spend on. Rather than selecting an item or business on limited information, you leave the decision to the person who knows their own priorities. That does not make cash the right answer for everyone; it makes it the safer option when a specific merchant choice would be a guess.
Digital money can feel both practical and personal—or impersonal, depending on the person. In the same 2025 Ipsos/Wells Fargo survey, 65% agreed that digital cash lets them choose something they really want, 65% said it is convenient, and 62% said it takes the guesswork out of gifting. At the same time, 57% agreed that sending digital cash feels impersonal, and 49% wanted digital cash but felt awkward telling the giver.
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If you choose a digital transfer, think about the recipient before choosing the service. A payment app or other digital method may require both people to have compatible accounts or qualify to use it, and its account terms may apply. Confirm the recipient can receive funds that way and use their preferred contact details. If you are not sure, ask rather than sending money through a service they may not use. Convenience for the giver is not necessarily convenience for the receiver.
Wells Fargo Product Management Director Steve Selfridge described the appeal of digital money this way: “The money is ready for the receiver to use however they wish.” That is the central advantage of cash: it does not tell the recipient which business to visit or what category to spend in. A warm message can make the intention clear while leaving the choice entirely theirs.
When is a gift card the better gift?
A gift card makes more sense when it is for somewhere the recipient already likes, can access and is likely to use. It can signal that you know their interests while still allowing them to choose what to buy or order from that merchant.
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The key is the recipient’s actual convenience, not the giver’s impression of what should be useful. In a 2024 Bankrate/YouGov survey, 24% of respondents said they had received a gift card for a place that was inconvenient to reach, and 23% said they had received one for a place they did not like. Bankrate commissioned the online survey of 2,373 U.S. adults, fielded August 19–21, 2024. These are reported experiences, not estimates of the odds that any particular card will go unused.
Before buying, consider whether the recipient visits the business, can use the card where they live, and would welcome spending the gift there. A card for a favored restaurant may be thoughtful; one for an unfamiliar shop can turn a gift into a task. As Bankrate Senior Analyst Ted Rossman put it, “You’re wasting your money if you give a gift card to a store or restaurant that your recipient won’t enjoy.”
Ask yourself a few concrete questions: Have they mentioned this shop, restaurant or service positively? Is it accessible to them? Is the card redeemable in the way they are likely to want to use it? A confident “yes” makes a merchant-specific gift more personal. If your answer depends on a guess—such as assuming they like a business because you do—the card may create a constraint rather than show understanding.
A gift card also leaves some choice within its limits. The recipient may pick a meal, product or service that suits them, while you have chosen a merchant you know they enjoy. That can be a useful middle ground between selecting a particular item and giving money with no direction. The advantage depends on fit: the more certain you are that the person will welcome the merchant, the more the card can communicate attention to their preferences.
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Do not confuse a gift card’s familiar brand with guaranteed usefulness. A person may like a business but have little reason to visit it, or may find it inconvenient to reach. The Bankrate findings show that some respondents had encountered precisely these problems. The figures do not predict what will happen to your gift, but they are a reminder to check the recipient’s real access and interest rather than relying on the card’s popularity.
What are the drawbacks of each choice?
Cash can feel less personal, and digital cash is only easy if the transfer method suits both people. Some payment services require compatible accounts or eligible users, and account terms may apply. If you are sending money digitally, verify the recipient’s preferred method and details rather than assuming they use the same service you do.
A gift card can be more constrained: the recipient may not want anything from the merchant, may find it inconvenient to use, or may lose the card. In the 2024 Bankrate survey, 34% reported losing money through gift-card expiration, losing the card, or a store going out of business. That figure combines several experiences reported by respondents; it is not the probability that a newly purchased card will lose value.
Each option has a different kind of uncertainty. With cash, the main question may be whether the recipient will appreciate the gesture or whether the transfer method is convenient. With a gift card, the giver must make a good merchant choice and the recipient must be able to use the card under its terms. A card can be a strong fit when those conditions are met, but it is less flexible if they are not.
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Both options can miss the mark if the giver focuses on convenience for themselves rather than usefulness to the recipient. Cash works best when the freedom is welcome. A gift card works best when the merchant is a genuine fit.
Do U.S. gift cards expire or charge inactivity fees?
For covered U.S. gift cards and certificates, federal rules generally protect funds from expiration for at least five years after issuance or the last load. Federal rules also limit dormancy, inactivity or service fees, but exclusions and detailed disclosure requirements apply; do not assume that every product has identical terms.
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Under the CFPB’s Regulation E, 12 CFR § 1005.20, an inactivity-related fee generally cannot be imposed until the card has had no activity for one year, required disclosures must be made, and no more than one such fee may be charged in a calendar month. Coverage depends on the product and jurisdiction, and state law may provide additional protections. Check the card’s terms, expiration and fee disclosures, and balance-retrieval instructions before giving it. These are U.S. federal rules, not a blanket statement about cards in other countries or excluded products.
The five-year protection is a minimum period for covered products, not a promise that every gift card has identical rules or remains usable in every circumstance. The federal provision has exclusions and detailed disclosure requirements. An inactivity fee is also not the same thing as an expiration date: the rule generally ties such fees to a year without activity, requires disclosures, and limits how often they may be imposed. Read the particular card’s terms instead of relying on a broad claim that all cards never expire or never carry fees.
Before handing over a card, make sure the recipient can find the information they need to use it. Check where it can be redeemed, whether the relevant expiration or fee terms are disclosed, and how to retrieve the balance. Keep the purchase or card information available if the recipient needs to look up the terms later. State protections may add to federal protections, while the federal rules described here apply to covered U.S. products; do not assume they govern a card issued elsewhere or a product that falls outside the regulation.
These checks matter because a card’s value is not just its face amount. Its practical value to the recipient depends on whether they can redeem it at a merchant they want to visit and understand the conditions that apply. If the terms are unclear or the card’s use would be inconvenient, cash may be the simpler gift.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How should you decide between cash and a gift card?
Use the recipient’s likely experience as the deciding factor, rather than treating either choice as universally more thoughtful.
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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problems- Ask whether you know a merchant they truly enjoy. If you do, and they can conveniently use it, a gift card may feel personal without forcing you to select a specific item.
- If not, favor flexibility. Cash is the safer choice when you are guessing, when the recipient’s needs may vary, or when a merchant restriction could be inconvenient.
- Check the delivery method. For digital cash, confirm that the recipient can receive it through the service you plan to use. For a digital or physical gift card, check how it is delivered and how the balance can be retrieved.
- Read the relevant terms. For a gift card, look for expiration and fee disclosures and any limits on where or how it can be redeemed. For digital money, check the payment service’s account terms.
- Add a note if warmth or context matters. A brief personal message can make either option feel intentional without taking away the recipient’s choice.
In practical terms: choose cash if you are unsure; choose a gift card if you are confident the recipient will enjoy and use that specific merchant. The survey evidence supports considering both options—not assuming the same preference for everyone.
A useful final check is to imagine the recipient receiving the gift. With cash, will they be able to access it in the form you are giving it, and will the freedom feel welcome? With a gift card, can they use it without changing their plans or making a special effort, and does the merchant genuinely suit them? These questions focus on recipient freedom, personal fit and convenience—the differences that matter more than a general rule about which gift is best.
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If you are still torn, choose the option with fewer assumptions. When you know the recipient’s favored merchant and its card will be easy for them to use, the gift card can offer both direction and choice. When you do not know that, cash avoids locking the gift to a place they may not want or be able to use. A short note can convey care either way.
Frequently Asked Questions
Do the survey results mean most people prefer gift cards to cash?
No. The 2025 figures allow respondents to prefer multiple gift types, so 56% for gift cards and 48% for cash or checks are not mutually exclusive shares. The survey covered U.S. adults’ holiday preferences, not every recipient or occasion.
Is it rude to give someone cash instead of a present?
There is no universal etiquette rule in the evidence that makes cash rude. If you are concerned it may feel impersonal, pair it with a sincere note that explains your thoughtfulness without specifying how the recipient should spend it.
Can I give both cash and a gift card?
Yes, if you have a clear reason for each—for example, cash for choice and a small card for a place you know the recipient enjoys. Avoid adding a merchant-specific card just to make the gift look more personal when you are not confident they will use it.
When should I choose cash over a gift card?
Choose cash when you are unsure about the recipient’s tastes, want to avoid a merchant mismatch, or think they may need flexibility. It is not tied to one retailer or service, though a digital transfer still needs to work for the recipient.
What should I check before giving a gift card?
Make sure the recipient likes the merchant and can conveniently use the card. Check its redemption limits, expiration and fee disclosures, and how to retrieve the balance. Covered U.S. cards have federal protections, but coverage and terms can vary.
Can digital cash feel impersonal?
It can. In the 2025 Ipsos/Wells Fargo survey, 57% agreed that sending digital cash feels impersonal, while many also valued its convenience and flexibility. A personal note can add context without restricting how the recipient uses the money.
Do all U.S. gift cards have to remain valid for at least five years?
Federal rules generally protect funds on covered gift cards and certificates from expiration for at least five years after issuance or the last load. Exclusions and detailed rules apply, so check the specific card’s terms and applicable state protections.
The Bottom Line
Choose cash when you are uncertain or want to give the recipient the widest choice. Choose a gift card when you know the recipient likes and can conveniently use that particular merchant. Either can feel thoughtful when it reflects the person receiving it; a short note can add warmth without limiting their options.
