Over Half of Costco Members Have an Executive Membership. Should You Join Them?
Costco is raising the price of its Executive membership on Sept. 1, 2024. Read on to learn if this membership tier is still worth it.
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Costco announced that it would be raising its membership prices starting in September of 2024. This will impact about 52 million Costco memberships, just over half of which are at the Executive level, according to the company.
If you've been eyeing the Executive membership, here's what you need to know and how to figure out if the cost is still worth it.
Perks of the Executive Costco membership
The Executive membership is the higher-tier membership option (the Gold Star membership currently costs half as much per year and comes with fewer perks). The Executive membership comes with a 2% rewards rate for purchases made on eligible Costco and Costco Travel purchases. A few other key perks include:
- Discounts on Costco services
- Fee-free shopping on the Costco website
- Included access to two membership cards
- A 100% satisfaction guarantee on the membership (with a full refund if you aren't satisfied)
If you choose a business Executive membership, you'd also get the ability to purchase items for resale, as well as the option to purchase additional membership cards for $60 each.
How the Executive membership compares before and after the price hike
There are two major changes coming for the executive-level membership:
| Date | Price | Reward rate |
|---|---|---|
| Pre-September 1 | $120 per year | Up to $1,000 |
| September 1 onwards | $130 per year | Up to $1,250 |
Bottom line: You'd still get the 2% rewards rate, but the cap has increased by $250 per year, alongside the $10 annual membership increase.
Is the Costco Executive membership still worth it?
If you had already decided that you wanted an Executive membership at Costco, this small fee increase probably shouldn't dissuade you from getting one -- especially since there is an even larger increase in the maximum rewards you can earn per year. Either way, there are many shoppers who can likely save by getting the Executive membership.
For example, if you spend $250 a month on qualifying Costco purchases, you could earn $60 per year in rewards. That more than makes up for the $10 membership-fee increase. And if you can get more than about $6 per month in savings on items by shopping at Costco instead of at your usual grocery store, you'll save money via this membership.
However, if your goal is to get more value out of the rewards than that membership cost, you should note that you'd have to spend a bit over $500 per month on qualifying purchases to out-earn those costs. Still, access to the other perks, like discounts on Costco services and the satisfaction guarantee, are certainly valuable features and will likely outweigh the costs in the minds of many shoppers.
Costco may be raising its membership fees, but for those who shop there often or who want to access its lower-cost items and services, the allure of the Executive membership has hardly lost its shine.
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