Image source: The Motley Fool

Now that we’re approaching the busy holiday season, many companies are running gift card promotions to encourage shoppers to spend money. Many eateries and retailers offer bonus gift cards to those who purchase gift cards within a set time period. These promotions offer an easy way to get extra money to spend at your favorite retailers.

But before shopping for these gift card offers, check to see if you can save more money with your Costco card. Costco sells discounted gift cards to many popular retailers — and the savings may be better. You may also have more flexibility in how you use the gift cards you buy.

Before buying gift cards this holiday season, here’s what to consider.

‘Tis the season of gift card deals

As we approach the end of the year, many brands are looking for ways to increase customer spending. The upcoming holidays make it a popular time of year to shop. For these reasons, many companies are running gift card promotions now or will be in the coming weeks.

These deals can be worthwhile, especially if you plan to buy gift cards. You can give gift cards to your loved ones during the holidays or purchase gift cards for your favorite brands and use the funds for your regular spending in the future. Either option is a win for your checking account.

But before loading up on gift cards because of promotions like this, consider whether it’s a good offer. Many companies provide bonus certificates or gift cards if you meet their gift card spending requirements in the set time frame. But often, these bonus rewards have restrictions.

Here’s an example: I recently received an email that outlined a Panera gift card promotion. Throughout the end of the year, shoppers can earn a $10 bonus card for every $50 spent on Panera gift cards. Sounds great, right? But there is one restriction that is worth mentioning. The bonus card can only be redeemed in January.

This deal may not appeal to those who don’t want to be restricted with how and when they use their bonus earnings. Before taking advantage of a gift card promotion like this, review the offer details carefully so you know what to expect.

Want to maximize your savings? Use a rewards credit card to pay for your next Costco haul. Click here to explore our list of top credit cards for Costco shoppers.

Here’s another way to save on gift cards

Promotions like the one mentioned above aren’t the only way to save. If you have a Costco membership, you can unlock discounts on gift cards. The warehouse club brand sells various gift cards at a discount off face value, including restaurant, lifestyle, and travel gift cards.

You won’t find Panera gift cards there. But there are plenty of other great deals that offer big savings. Here are just a few gift card deals that you can shop at Costco or Costco.com:

• Get four $25 Domino’s gift cards for $74.99
• Buy four $25 TGI Friday’s gift cards for $79.99
• Purchase two $50 Uber gift cards for $79.99
• Get two $50 Dave & Busters gift cards for $79.99

You may want to consider whether using your Costco membership perks is a better way to save on gift card purchases this holiday season. Taking advantage of all the members-only perks and discounts available to you can help you maximize your Costco membership.

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.Natasha Gabrielle 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.