Image source: Upsplash/The Motley Fool

Costco Executive and Sam’s Club Plus memberships have a lot in common. If you have a big household and regularly shop at one of the warehouse giants, their top-shelf premium memberships could make financial sense.

But is one better than the other? Read on to find out how to decide between the two.

Costco Executive vs. Sam’s Club Plus

One of the big benefits of both Costco Executive and Sam’s Club Plus is the 2% cash back on the majority of your spending. Both also offer extra perks for premium members, such as additional discounts or savings on delivery.

However, the two memberships aren’t identical. And understanding the differences could save you money. For example, a Sam’s Club Plus membership costs less, but its cash back cap is also much lower. If you spend over $25,000 a year on warehouse club purchases, you’d earn more back with a Costco Executive membership.

If you’re spending enough to reach either stores’ cash back limit, the right credit card could save you hundreds of extra dollars a year. Stack credit card rewards with your premium membership cash back to earn more. Click here to learn more about our top way to maximize the value you get from your premium membership.

Here’s a summary of Costco Executive and Sam’s Club Plus memberships:

Costco’s cash back rewards are better

Costco Executive and Sam’s Club Plus both pay 2% cash back on spending. Think about how much you spend and work out whether it’s enough to cover the additional cost.

• Costco Executive costs $65 more than the basic membership fee. If you spend $3,250 a year at Costco, the upgrade to an Executive membership will pay for itself.
• Sam’s Club Plus costs $60 more than the basic membership fee. If you spend $3,000 a year at Sam’s Club, the upgrade to a Plus membership will pay for itself.

The main differences come in how you claim your rewards and how much you can earn. Costco pays rewards each year in the form of a gift certificate. Sam’s Club Plus members get their cash back credited to their membership cards each month. There are pros and cons to both routes, depending on your shopping habits.

If you’re a big spender, a Costco Executive membership is by far the better choice. It caps its annual cash back at $1,250. You’d have to spend $62,500 a year or just over $5,200 a month to reach that limit. The maximum Sam’s Club Plus members can get is $500 annually. In spending terms, that’s $25,000 a year or almost $2,100 a month.

Premium membership cash back benefits aren’t the only way to get rewards on your everyday spending. If grocery shopping makes up a large chunk of your budget, look for a card that pays extra rewards every time you go to the store. Some of the best Costco credit cards pay 2% or 3% back on groceries — click here to learn more.

Sam’s Club Plus will save you more on delivery

If you regularly shop online, Sam’s Club Plus stands out. It offers free delivery on orders over $50. Ordinary members will need to pay a $12 delivery fee on Club orders. If you regularly shop online, you’d quickly cover the premium fee in savings on delivery fees alone.

In contrast, Costco Executive members don’t get any extra delivery benefits. There’s free two-day delivery on online orders of over $75 for both regular and Executive members. Members can also pay an Instacart premium for same-day delivery.

It’s also worth noting that shopping with Costco online can be more expensive than visiting the store. Sam’s Club again has the advantage here — it says the prices at Samsclub.com are the same as you’ll get in store.

Bottom line

If you’re deciding between Costco Executive and Sam’s Club Plus, a lot comes down to which store is nearer and which has product lines you prefer. That said, there are some key differences:

• Costco’s higher cash back limit could pay off if you spend a lot of money at your favorite warehouse giant.
• The delivery benefits on Sam’s Club Plus give it the edge if you do a lot of shopping online.

You can also take comfort in knowing that Costco and Sam’s Club both offer money-back guarantees on their club memberships, so there’s no risk in giving one a try today.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.