There are different membership levels at Costco. Of course, with higher levels, you get more rewards. However, you also pay a higher annual fee. So, is it worth it to pay more for the perks of being a Costco Executive Member? Here’s what it’s all about.
Types of Costco Membership
There are two main types of Costco membership: the Gold Star membership and the Executive membership. The Gold Star membership costs $60 per year. In contrast, the Executive level is $120 per year. In other words, you pay twice as much for the perks of being a Costco Executive Member.
You Get Money Back As an Executive Member
The most important thing to understand is that even though you pay upfront for a better membership level, you ultimately might get that money back. In fact, depending on how much money you spend at Costco each year, you might get that back and then some. Why? Because one of the biggest perks of being a Costco Executive Member is that you get 2% back on most purchases.
You’re allowed to earn up to $1000 back per year. Since you’re only paying $60 more annually than you would for a Gold membership, this can well be worth it. Of course, you have to spend money to get that money back. If you shop at Costco often, then it’s worth it. If you spend $50000 at Costco per year, you’ll earn the $1000. Most people don’t spend that much, obviously. However, as long as you spend $3000 per year, you’ll earn back the extra $60 for the membership.
Once per year, shortly before it’s time to renew your Costco card, you’ll receive the 2% back rewards certificate. You’ll earn that on most purchases made in store or on the Costco website. However, there are some exceptions. For example, gas and tobacco don’t count towards the 2% back rewards program. In some states, alcohol and tobacco purchases don’t count either (though they do in most states.) Learn all of the details about what’s eligible for the reward here.
Other Perks of Being a Costco Executive Member
Chances are that you probably spend enough at Costco to make the 2% rewards back worth it. After all, you’re only paying $60 more per year. Therefore, as long as you spend $3000 per year at Costco on eligible purchases, then you’ve made your money back. That said, though, there are other perks of being a Costco Executive Member.
While the 2% rewards doesn’t count for some of the special Costco services, you actually do get discounts and advanced benefits on many special Costco services. Did you know that Costco offers members a wide range of service discounts from life insurance to home water delivery? You can find services for both home and business. Executive members get more perks and better deals on those services.
Additional Costco services include deals on:
- Home mortgage loans
- Auto, home and life insurance
- Auto loans
- Personal and business checks
- Custom logo services
- Identity protection
- Travel services
- Business health insurance
- Rental trucks for moving
- Printing, payment processing, and other business services
- Affordable dental plans
- Home installation of varied products including flooring, heating and cooling systems, garage doors and more
You’ll also receive the Costco Connection magazine if you decide to upgrade to a Costco Executive Membership.
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