Is the Costco Executive Membership Worth the Investment for You?

Is the Costco Executive Membership Worth the Investment for You?

Is the Costco Executive Membership Worth the Investment for You?

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Costco offers two different membership levels. There is the Gold Star membership, which costs $60 per year, and the Executive membership, which costs $120.

If you’re joining the Warehouse Club, you might be tempted to sign up for the Enhanced Membership, as it has some benefits that the Gold Star membership doesn’t offer. But would this be a waste of your hard-earned money in your Bank accountor would this be the right choice?

Here’s how you can decide.

How much money do you spend at Costco?

There’s one big question you need to ask yourself first that will help you decide if it makes sense to pay $60 more for the Executive Membership. You need to ask yourself how much money you actually plan to spend at Costco over the course of the year.

The reason this is important is because Costco Executive membership offers a 2% annual reward on qualifying purchases. Once a year, you receive a reward equal to 2% of everything you spent at Costco throughout the year, up to a maximum reward of $1,000.

Now if you do some quick math, you can see that if you spend $3,000 a year at Costco, you’ll end up making $60 from it. So if you go out of credit card Often enough for you to spend as much or more, Executive membership is worth it for you. The cash back you earn will cover the additional cost of upgrading the membership.

If you spend more above $3,000, your membership would more than pay for itself. Let’s say, for example, you spent $6,000 during the year at Costco. You’d get $120 back and Costco would have paid you $60 for choosing the upgrade.

If you’re spending less than $3,000, you’re better off going with the Gold Star membership. unless you benefit from other exclusive benefits offered by Executive membership.

Will you benefit from other benefits of Executive membership?

While the 2% annual reward is the biggest draw for most people, there are other benefits to executive membership.

These benefits include deeper discounts on other services offered through Costco’s partnerships, including lower-cost checks from its check printing service or discounts on car insurance. Free roadside assistance is also available for those covered by Costco’s auto insurance program.

If you spend less than $3,000 a year at Costco, you’ll want to read carefully about the benefits of Executive Membership. If you don’t use its other services, like home, auto, or pet insurance or printing services, you’re probably better off opting for the Gold Star membership level.

For many people, the big draw is the Costco gas and their warehouse club purchases, not these extra services – so the extra savings they get may not be a reason to pay Improved membership fees. But it all depends on your goals in joining the warehouse club and your purchasing habits.

The important thing is that by taking the time to understand the value of these added benefits, you can make the choice that’s right for you.

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We strongly believe in the Golden Rule, so editorial opinions are our own and have not been previously reviewed, approved or endorsed by included advertisers. Ascent does not cover all market offers. Editorial content on The Ascent is separate from editorial content on The Motley Fool and is created by a different team of analysts.Christy Bieber has no position in any of the stocks mentioned. The Motley Fool holds positions at and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

Is Costco Executive membership a waste of money for you? was originally published by The Motley Fool

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