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Joining Costco and Sam’s Club isn’t just about bulk shopping. It’s not about the free samples either. Sure, the gas prices are legendary, but very few of either club’s products can offer such clear-cut savings as their gift card packages.

Call me optimistic, but buying gift cards at either club can save you as much as (or more) than your membership costs. Often these cards offer you 10% to 30% of value for free. In numbers, that means a $100 gift card would cost you between $70 and $90.

However, as you might have guessed from the title, neither Sam’s Club or Costco sell gift cards in exactly the same way, nor do they have gift card offerings for the same places. While they both can save you money, one might actually have better deals for you than the other. If you’re on the fence about which club to join, or you’re a member of both, let’s look at which might have better gift card offerings.

Buy gift cards at Costco to save more money

As we’ll see below, Costco doesn’t offer as many gift card choices as Sam’s Club. However, when the two clubs offer the same gift card, more often than not Costco’s prices will save you the most money.

For example, Sam’s Club sells $250 Southwest Airline gift cards for $235. That offers you 6% of value ($15) for free. If you were to buy two of these gift cards, you’d spend $470 for $500 of gift card value.

Why would you buy two? Well, because Costco sells a $500 Southwest Airlines gift card for $449.99. Although you have to buy double the value of the Sam’s Club gift card, you also get more value. On this product, you would save $50, which offers you 10% of value for free.

What’s more, a good credit card for Costco, one that earns at least 2% to 3% in cash back, will add more value to your purchase. In fact, if you’re earning 1% back (or nothing at all), you’re leaving money on the table. Learn which Visa credit card will earn you up to 3% back on your Costco purchases for the card’s first year.

Buy gift cards at Sam’s Club if you want more choices and more control over your denominations

If you want a wide selection of gift cards, Sam’s Club takes the cake.

A quick glance at Sam’s Club’s gift card selection online shows that it not only has more to choose from (more than 405) than Costco (139), but it also has more big-name brands that could appeal to a wider audience. For example, Sam’s Club offers discounted gift cards to PetSmart, H&M, Wayfair, HP Instant Ink, Starbucks, Google Play, and Taco Bell, among others. Costco does not currently have gift cards to any of these places.

What’s more, Sam’s Club also lets you buy gift cards in smaller denominations. For instance, instead of buying gift cards in values of $100, you can buy some gift cards in denominations of $10 to $25. Meanwhile, Costco’s lowest value gift card is $50.

The lower denominations at Sam’s Club could come in handy if you’re giving these to your kids’ teachers or friends and don’t want to spend more than $50 to $100. However, as discussed above, these lower denominations could also mean getting less value than a higher-valued card sold at Costco.

Sam’s Club makes it easier to pay

The good thing about Sam’s Club is that it accepts all major credit cards. This can open the door to maxing out cash back on all your purchases. Like Costco, Sam’s Club even has its own credit card that earns cash back.

Ultimately, Costco offers more chances to save on gift cards, while Sam’s Club has more selection and lower denominations. Even if Costco offers more value, Sam’s Club’s greater selection may mean buying gift cards you actually want, which could save you more money over time. And if you’re a member of both, then hey — you could mix and match to your liking and save more.

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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.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Alphabet, Costco Wholesale, Starbucks, and Visa. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy.