Nearly half of American polled in our recent Consumer Reports Holiday Shopping Poll said they expected to purchase gift cards for families and friends. It's no wonder: They're a nice proxy for cash, and perfect if you don't know what else to give. They're also a useful as a tip for folks who provide service to you year-round.

Gift cards have their drawbacks. American Express recently rescinded monthly fees on its gift cards in time for the holidays, but retained other fees. Other issuers still may require fees and expiration dates. The Credit CARD Act of 2009, scheduled to become fully effective in February 2010, would prohibit gift-card fees for at least one year after purchase, and prohibit expiration dates earlier than 5 years. (The Senate has yet to approve legislation passed last week in the House that would speed up most aspects of that law to December 1 of this year.)

Fees and expiration dates notwithstanding, gift cards have additional drawbacks, in terms of how they're used. Listen here to Tightwad Tod and be forewarned!