Money Management

There are many factors to consider when choosing a pharmacy. Read on to learn which pharmacy is better for you, Costco or Sam’s Club. 

One of the top concerns people encounter in their daily lives is healthcare, and the costs that come with medical expenses and prescriptions can be overwhelming. It’s important to explore different options to get the best deals on your prescriptions. Two popular options are Costco and Sam’s Club. But with so many variables to consider, it can be challenging to determine which one offers the most value. Here is a comparison of Costco and Sam’s Club and how they stack up when it comes to prescription refills.

Costco vs. Sam’s Club: Membership costs

Costco and Sam’s Club are unique in that they charge a membership fee to shop there, but neither requires a membership to buy prescription medications. However, members at both clubs get a discount on prescriptions, while non-members pay full price.

Costco offers two membership tiers, $60 a year for the Everyday Value Gold Star membership. $120 a year for the Executive membership. Sam’s Club also offers two membership tiers, $45 a year for the Basic membership and $100 a year for the Plus membership. Plus members save even more on prescription medication than regular Club members do.

A Sam’s Club membership is $15 to $20 cheaper than Costco, and Plus members get an extra discount on prescription meds. So if the membership price is your main factor, Sam’s Club may be best for you. However, there are other reasons why Costco may be worth the extra cost.

Costco vs. Sam’s Club: Prescription prices

The prices vary widely based on the medication and the type of membership you have. The comparisons below are for common drugs. The Sam’s Club prices are for both Club members and Plus members. Plus members get an additional discount on prescriptions as part of the benefits package.

The Costco prices listed below are for members who have joined the Costco Member Prescription Program, a prescription drug discount card program. This is offered at no additional charge to all Costco members.

In general, prices at both retailers are cheaper than at many other pharmacies. Costco states that savings are estimated between 2% and 40%. Sam’s Club states that the program delivers average savings of 65%, with potential savings of up to 80% off of the regular retail prices.

Both are competitive so it’s best to check the price of your medication at both pharmacies to see which one offers the best deal.

Costco vs. Sam’s Club: Convenience

The pricing available through Costco’s Member Prescription Program applies at local Costco pharmacies, Costco mail order, and thousands of participating neighborhood pharmacies, including Walgreens, Albertsons, Safeway, Vons, Saveon, Bestcare, Nowrx, Delta, United, Better Life, and more.

Sam’s Club members can save money on prescriptions through the RxSavings Program network. Rx Savings grants all members access to generic medications starting at $4. In addition to generic drug price discounts, there are discounts to brand-name medications at Sam’s Club pharmacy and 62,000 other participating pharmacies.

You can get your medication at both Costco and Sam’s Club either in-store or online. Sam’s Club’s Pharmacy delivery services are offered by DoorDash within a 10-mile radius of participating Sam’s Clubs. The standard delivery fee is $7.99. The first two deliveries are free for Sam’s Club members, and delivery is not available in Puerto Rico, Kansas, and Hawaii.

Costco’s Mail Order Pharmacy offers three delivery options: Standard UPS, which takes six to 14 days and is free, three-day UPS for $10.95, and two-day UPS for $13.95. Costco delivers prescriptions everywhere in the U.S.

Do a little research to save the most money

Both Costco and Sam’s Club offer excellent options when it comes to filling your prescriptions. When it comes to convenience, Costco has an edge, but Sam’s Club wins out when it comes to its membership prices. Both pharmacies have lower prices than many retailers, but when you compare Costco and Sam’s Club with each other, the prices for certain medications vary widely.

To save even more money, Sam’s Club Mastercard holders can earn up to 3% cash back on pharmacy purchases. Costco Anywhere Visa® Card by Citi is similar, with 2% on all purchases.

Ultimately, it’s up to you to choose which is best for you. Both options are worth considering, depending on your location and needs. Before you shop, compare prices side by side so you can ensure you get the best deal possible on your prescriptions!

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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.The Motley Fool has positions in and recommends Costco Wholesale, DoorDash, and Mastercard. The Motley Fool recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.

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Having zero savings is far from ideal. Read on to see how a $0 balance will impact your credit score. 

It’s important to have money in savings at all times in case an unplanned bill arises. It could be a car repair, a medical bill, or something else.

Letting your savings account balance get down to $0 could mean struggling to pay for unexpected expenses and racking up costly debt in the process. It could also mean falling behind on existing bills.

Carrying a large amount of debt has the ability to drag down your credit score. The same holds true for being late with bills. But if your savings account balance gets down to $0 and neither of those things happen, then your credit score may not be affected at all.

Savings don’t impact credit scores

There are five factors that go into calculating a credit score:

Your payment history, which speaks to how timely you are with billsYour credit utilization, which speaks to how much of your revolving credit limit you’ve spentYour credit history lengthYour credit mix, which speaks to the different types of accounts you haveYour recent credit card or loan applications

But you’ll notice that none of these factors consider the amount of money you have in the bank. So if your savings account balance gets down to $0, it may not be a great thing from a general financial standpoint. But that alone won’t cause your credit score to take a hit.

In fact, banks don’t even report savings balances to the credit bureaus. So even if you have $50,000 in savings, that by itself won’t do a thing to help your credit score improve.

Of course, having a large amount of savings might make you more likely to pay bills on time and keep your credit card balances to a minimum. And those factors could help your credit score rise or stay in good shape.

Similarly, if you don’t have any money in savings and are late paying a bill because of that, your credit score might take a huge hit (since unfortunately, a single late payment has the potential to cause a lot of damage, especially if your score is high to begin with). But if you have a $0 savings account balance and you pay every bill on time, all the while avoiding debt, then it may not have an impact on your credit score at all.

Do your best to build your savings

Having $0 in savings can be stressful, because you know you’re potentially one unplanned expense away from taking on a pile of debt. But you can at least rest assured that your credit score won’t be impacted by a $0 savings balance.

That said, it’s important to scrounge up some cash reserves if your balance is sitting at $0, so if that’s your situation, it may be time to cut back on leisure spending until you have at least a small cushion. Getting a side job could be another way to build some savings quickly — and avoid running into trouble in the absence of having a financial safety net. The gig economy is booming, though, so chances are, if you’re willing to put in the time, you’ll be able to find a way to earn some extra cash.

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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.The Motley Fool has a disclosure policy.

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