Costco is known for its warehouse clubs, making it ideal for shoppers looking to buy items in bulk.
Customers sign up for Costco membership to benefit from the retailer’s discounts, perks, and deals. So, what is the Costco Executive membership, and is it worth it? Here’s all you need to know!
What Is Costco Executive Membership In 2023?
Costco offers two types of membership plans in 2023. If you sign up for the Executive membership, you are eligible for an annual 2% reward on qualifying purchases when shopping in-store, online, or using Costco Travel. In addition, this membership comes with a free Household Card that customers can use to purchase home products.
To learn more about Costco Executive membership, how to sign up, how much it costs, and the benefits, read on!
What Is The Difference Between The Costco Basic & Executive Membership?
Costco has different types of membership plans; Gold Star, Business, and Executive. If you register for a personal membership, you must choose between Gold Star and Executive.
Here’s the difference between the two:
Gold Star Membership
This basic membership plan at Costco has the following features:
- $60 annual membership fee
- Customers get a free Household Card
- You can claim the benefits at all Costco locations worldwide
If you upgrade to the Costco Executive membership, here’s what you should expect:
- Annual membership fee of $120
- Membership includes a free Household Card
- Valid at all Costco locations worldwide
- An annual 2% reward on qualified purchases
- Extra savings and benefits on Costco services
- Additional benefits on some Costco Travel products
As an Executive member, you get lower prices for Costco services such as roadside assistance, check printing, and auto buying.
In addition, the store sends you a monthly copy of the Costco Connection magazine.
How Much Does Executive Membership Cost?
Ideally, a Costco membership costs $60 a year. Therefore, if you need to get the Executive membership, you must pay the extra $60 annual fee.
What Are The Benefits Of The Costco Executive Membership?
Costco’s Executive membership comes with some benefits. For example, here are some of the reasons why you should upgrade:
2% Rewards On Qualified Purchases
When you switch from the Gold Star to Executive membership, the most notable difference is the annual 2% reward on eligible purchases.
That said, you can earn this reward when you shop at any Costco physical store, Costco.com, or use Costco Travel.
Also, keep in mind that Costco has a limit of $1,000 that you can get back annually; therefore, once you hit this limit, you won’t be eligible for additional rewards.
Costco Travel Rewards
If you need to book your annual vacation, a cruise, a hotel stay, or a rental car via Costco Travel, you’ll earn more rewards as an Executive member.
Additionally, Costco has special extras on some vacations when booking a resort or spa via its website.
How Do You Earn The 2% Reward?
According to Costco, you’ll earn the 2% reward only on qualified purchases, which include:
- Purchases made by the active primary Household cardholder
- Purchases 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 at Costco
However, some purchases don’t qualify for the 2% rewards, which include:
- Items bought in Japan, Australia, Korea, France, China, the UK, Spain, Taiwan, and Iceland
- Alcohol (in some states)
- Battery fees
- Shipping fees
- Food court
- Oil disposal fees
- Optical exams
- Home delivery services
- Costco shop cards
How Can You Receive Your 2% Reward?
Costco usually mails the 2% reward certificate with a renewal notice two months before your membership renewal date.
Also, if you are unsure about your renewal date, you can consult the staff at the Costco warehouse or check your account on the Costco app or Costco.com.
However, if you reverse or unsubscribe to your Executive membership before the year is over, you’ll lose all your accumulated rewards.
How Can You Use Your Annual 2% Reward?
Once you get your reward certificate, you can use it as you please.
When shopping in-store, you can give the cashier the certificate as your checkout; they will deduct 2% from your total purchases.
However, if you want to use the reward on Costco.com, you’ll need to redeem it at a warehouse on your Costco Shop Card and use that to shop online.
Is The Costco Executive Membership Worth It?
If you are wondering whether the Costco membership is worth it, you need to calculate how much you’ll save.
For instance, if your monthly purchases are $250, this is $3,000 annually, and there’s an annual reward of $60.
Therefore, if your household expenses are higher at $2,500 per month, this will be $30,000 annually and a $600 annual reward.
Further, if you need to make bulk purchases at Costco, the Executive membership is worth it because you earn rewards that you can use to pay for other products and services.
If you sign up for the Executive membership, you are eligible for an annual 2% reward on qualifying purchases when shopping in-store, online, or using Costco Travel.
In addition, this membership comes with a free household card that customers can use to purchase household items and pay for services.
Therefore, upgrading your Costco membership to the Executive plan is beneficial if you regularly shop at this retailer.
Also, you can use the 2% rewards when shopping in-store, via Costco.com, or making Costco Travel purchases.