Starting September 1, 2024, Costco is raising its membership fees. The Gold Star membership will now cost $65 annually, while the Executive membership will jump to $130. With these changes, many members are asking: Is the Executive membership worth the extra cost?
Here’s why so many Costco shoppers are opting for the Executive upgrade, despite its higher price tag. Let’s explore the top two benefits of an Executive membership and how they can enhance your shopping experience.
1. The 2% Costco Reward: A Significant Perk
One of the primary reasons for choosing a Costco Executive membership over the Gold Star is the enticing 2% Costco Reward. This benefit allows Executive members to earn 2% back on eligible Costco purchases, including those made online and through Costco Travel.
| Monthly Spend | Annual Spend | Annual 2% Cash Back |
|---|---|---|
| $100 | $1,200 | $24 |
| $271 | $3,250 | $65 |
| $500 | $6,000 | $120 |
| $688 | $8,250 | $165 |
| $1,000 | $12,000 | $240 |
Maximum Reward Cap: The reward is capped at $1,250 annually, which means you can earn up to this amount each year based on your purchases.
Pro Tip: To maximise your savings, pair the 2% Reward with a high-rewards credit card for Costco purchases. This can help you stack up on benefits and make the most out of your spending.
2. Exclusive Discounts on Costco Services
In addition to the 2% Reward, Executive members enjoy additional discounts on a variety of Costco services. These services range from pet insurance to home improvement, and the savings can add up significantly.
Here’s a glimpse of some exclusive Executive benefits:
- Pet Insurance: $15 enrollment fee waived for Fido pet insurance.
- Auto Insurance: Complimentary roadside assistance.
- Home Insurance: Free home window repair/replacement.
- Payment Processing Services: No application or statement fees.
Note: To access these benefits, you need to purchase your insurance or services through Costco while logged into your account. These perks cannot be applied to existing policies.
Bonus Reason: Peace from Upgrade Push
While this might sound a bit humorous, one added benefit of the Executive membership is the end of constant upgrade pitches at checkout. With an Executive membership, you can shop in peace without the nagging sales prompts to upgrade.
Is the Executive Membership Worth It for You?
To determine if the Executive membership is a good fit, consider your annual spending at Costco. Based on the 2% Reward structure:
- Annual Spend of $3,250: Earns $65 back, covering the cost of the Executive upgrade.
- Annual Spend of $8,250: Earns $135 back, providing a substantial benefit over the Gold Star membership.
If your annual spend exceeds $3,250, upgrading to Executive could be a savvy financial move. For those spending less, sticking with the Gold Star might be more economical unless you frequently utilise Costco’s services.
Maximising Your Savings with the Right Credit Card
To further enhance your Costco experience, consider a versatile credit card offering substantial rewards. Look for cards with:
- Unlimited 2% Cash Rewards: Ideal for all purchases, including Costco.
- Generous Sign-Up Bonuses: Many cards offer easy cash bonuses, boosting your savings.
- 0% Introductory APR: Perfect for managing purchases without immediate interest.
One standout choice is a credit card that combines a high cash bonus with unlimited 2% rewards, ensuring you get the best returns on every purchase.
Conclusion
The Costco Executive membership offers significant advantages over the Gold Star option, particularly through the 2% Reward and exclusive service discounts. If you’re a frequent Costco shopper with substantial annual spending, the Executive membership can be a worthwhile investment. It’s also a relief to avoid the constant upgrade requests at checkout.
For those considering an upgrade, calculate your annual spend and weigh the benefits to decide if it’s right for you.
Useful Links:
- Costco Executive Membership Benefits
- Fido Pet Insurance through Costco
- Costco Home Insurance Benefits
- Best Credit Cards for Costco Purchases
- Costco Services Discounts
