One of the ways to save money when shopping is by joining a warehouse club that allows you to access special deals and discounts in exchange for a membership fee.
That being said, Costco is renowned for offering its customers this type of membership structure.
Customers can sign up for the Executive membership for more benefits and at a higher fee. But is it really worth it? Here’s all you need to know!
Is Costco Executive Membership Worth It in 2023?
If you frequently shop at Costco, the Executive membership is worth it because you’ll earn rewards when shopping that you can use to pay for other products and services in 2023. Executive members pay $120 annually, but they get benefits such as the annual 2% reward on purchases of up to $1,000.
Read on for more information about how Costco Executive works, the benefits, costs, and whether it’s worth it, along with other useful facts!
What Is the Costco Executive Membership?
Costco’s Executive membership is a premium membership plan that enables customers to earn an annual 2% reward on qualifying purchases when they shop at all Costco platforms.
Executive members get a 100% satisfaction guarantee, and Costco will cancel and refund the membership fee if a customer is dissatisfied.
How Much Should You Spend to Make Costco Executive Worth It?
If you’re wondering whether the Costco membership is worth it, you have to calculate how much you spend and how much you save.
For instance, if your monthly purchases are at $250, this is $3000 annually, which earns an annual reward of $60.
However, if your household expenses are higher at $2,500 per month, this will be $30,000 annually and a $600 annual reward.
Your Executive membership is worth it if you spend over $500 every month or $6,000 annually on qualifying purchases. 2% on $6,000 gets you back the $120 you pay for membership.
Therefore, if you make bulky purchases at Costco, the Executive membership is worth it because you earn rewards that you can use to pay for other products and services.
You’ll break even if you make several big purchases every month for your household.
What Is the Difference Between the Executive and Regular Membership at Costco?
Costco has three membership plans; Gold Star, Business, and Executive. Listed below are the differences between the regular Gold Star and Executive membership:
This basic membership plan comes with the following features:
- $60 annual membership fee
- Includes a free Household Card
- This membership is valid at all Costco locations worldwide
Once you upgrade to Costco Executive membership, here are the features:
- Annual membership fee of $120, including a $60 membership fee and a $60 upgrade fee
- Membership comes with a free Household Card
- Valid at all Costco locations worldwide
- Customers get an annual 2% reward on qualified purchases
- Additional savings and benefits on Costco services
- More benefits on some Costco Travel products
How Much Does the Executive Membership Cost?
Costco’s membership costs $60 a year. When upgrading to the Executive membership, you have to pay the extra $60 annual fee.
If you pay for a Business Executive membership, you’ll also need to pay an additional $60 for every extra cardholder. Therefore, as you upgrade, this is what you should budget for.
What Are the Benefits of Costco’s Executive Membership?
Costco’s Executive membership has some benefits, some of which are listed below:
2% Rewards on Qualified Purchases
Once you switch to Executive membership, the key benefit is the annual 2% reward on eligible purchases.
Members earn this reward when they shop at any Costco physical store, via Costco.com, or use Costco Travel.
Costco has a limit of $1,000 on the reward; therefore, once you hit this limit, you won’t get additional rewards.
Costco Travel Rewards
Costco Travel allows members to book annual vacations, a cruise, hotel stays, or rental cars.
As an Executive member, you’ll earn more rewards, such as special extras on some vacations when you book a resort or spa via the company website.
Costco offers Executive members lower prices for Costco services such as roadside assistance, check printing, and auto buying.
In addition, the store sends a monthly copy of the Costco Connection magazine.
How Do Executive Members Earn the 2% Reward?
You’ll earn the 2% reward only on qualified purchases such as the following:
- Purchases that are only made by the active primary Household cardholder
- If the purchase is made in Puerto Rico, Canada, or via Costco.com
- Costco Travel purchases if the customer is a member before the travel starts
- Pharmacy and over-the-counter purchases made at Costco
However, customers don’t get the 2% rewards for the following:
- Purchases in Japan, Australia, Korea, France, China, the UK, Spain, Taiwan, and Iceland
- Auto purchasing
- Shipping Fees
- Optical exams
- Alcohol in some states
- Battery fees
- Food court
- Oil disposal fees
- Home delivery services
- Costco shop cards
Do Costco Executive Members Get in Early?
Costco Executive members used to have exclusive shopping hours, but the policy has changed as of 2022.
There’s no exception now; all members have similar shopping hours, despite their membership status.
If you frequently shop at Costco, the Executive membership is worth it because you’ll earn rewards when shopping that you can use to pay for other products and services.
Executive members pay $120 annually, but they get benefits such as the annual 2% reward on purchases of up to $1,000. If you shop in bulk and spend more than $6,000 annually, you’ll break even and earn back the $120 membership fee.