It’s relatively easy to cover the cost of a Costco executive membership.
- With an annual cashback reward of 2%, an executive membership can easily pay for itself.
- Executive membership offers more than access to a Costco warehouse store. It also provides discounts and rebates on products and services from third-party companies.
Big-box retailer Costco currently offers three levels of membership: Gold Star, Business, and Executive. At $120 per year, it may come as no surprise that the Executive Membership offers the most perks. Here, we’ll cover those perks, including one or two that may surprise you.
Breakdown of annual membership fees
Gold Star Membership
1. Annual 2% reward
If you hear someone talk about their “Costco reward,” they likely carry an Executive Member card. The moment you sign up as an Executive Member, you’re enrolled in Costco’s 2% reward program. For a frequent Costco shopper, it’s possible to earn up to $1,000 back each year — all for spending an extra $60 on membership.
Granted, a shopper would have to spend $50,000 at Costco in one year to earn the entire $1,000 cashback reward, but that doesn’t mean it’s not worth exploring.
Let’s imagine that you shop at Costco once a week, spending $150 each visit. That’s $7,800 per year. With the Executive Membership, you’d earn $156 back — enough to cover the entire annual membership, plus some.
For shoppers who buy everything through Costco — from electronics to Christmas gifts — the total return could be much higher.
The only fly in the ointment is that rewards cash must be used to make purchases at Costco. Still, for a regular Costco shopper, that shouldn’t be too difficult.
Bonus perk: Using a rewards credit card to make Costco purchases means the member will earn both 2% back in addition to any rewards offered by their credit card company.
2. Costco Travel
With an Executive Membership, the cardholder has access to Costco Travel. Costco Travel helps customers plan for trips, handling everything from rental cars to cruises and theme park packages.
As an added bonus, executive cardholders earn cash towards their 2% annual reward on qualified purchases made through Costco Travel.
3. Costco services
Executive members can keep more money in the bank by taking advantage of discounts and rebates. For example, through Sept. 30, 2022, they can purchase or lease a new 2021 or 2022 Chevrolet Silverado HD pickup at a discount by combining a $1,000 member-only incentive with manufacturer incentives. They all save on goods and services like:
- Auto & Home insurance
- Bottled water delivery
- Figo Pet insurance
- Identity protection
- Auto maintenance
Perhaps the best thing about the discounts and rebates offered is how they cover things people spend money on anyway. Everyone who owns a car needs auto insurance and homeowners typically need homeowners insurance. If there’s a pet in the family, 15% off pet insurance is a good way to cut down on veterinary costs.
The best way to buy an Executive Membership or upgrade a current Costo membership to executive status is to stop by the membership counter at Costco.
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