Is Costco's Executive Membership Worth The Additional Cost? Here's What We Know

Costco is a mecca for all things home and food, from its famous inexpensive food court to finds that help you style and organize a crowded home. But Costco's recent membership price hike, its first since 2017, and increasingly strict monitoring of membership "sharing" has consumers and researchers talking. In a world of inflating costs and subscription fatigue, people are wondering if members will actually maintain their annual membership and if former membership moochers will translate into paying subscribers. And beyond just simply committing customers to a membership program, Costco still offers a premium, "Executive" membership tier that, at double the annual fee as the regular Gold Star membership, leaving folks wondering: How much does Costco membership even cost now? And is it worth it to upgrade to the Executive level?

Evidently, some 26 million executive members around the globe believe the higher price tag is worth it, according to the company's annual report. Costco's Executive membership, which costs $130 per year now with the new fee increases, boasts a list of benefits that regular old customers don't have access too. With additional discounts on certain services available at the megastore and an intriguing annual rewards program, the appeal of the Executive membership is understandable. But what does the membership actually get you over the Gold Star membership? And how can you maximize your benefits? For those who love getting rewards coupons back, frequently book travel, and are looking to make big purchases soon, the Executive membership may be right for you.

What actually makes the Executive membership different from its more budget Gold Star membership counterpart is, first and foremost, the price. The Gold Star annual is $65 per year, while the Executive membership costs $130 annually. Both carry mostly the same basic benefits — two membership cards for a primary holder and a secondary shopper, access to shopping on Costco.com, and the ever-assuring promise of satisfaction guaranteed. But where Executive members will see the biggest difference from the Gold Star membership is in its 2% rewards back program.

Executive members earn 2% "back" on eligible purchases throughout the year in the form of a rewards certificate. Purchases made in-store, online at Costco.com, and Costco Travel can be eligible towards rewards accrual, but prospective members should be aware there's a cap to earning; the maximum annual certificate amount is $1,250. The potential to max out on rewards earning is small, though, since you would have spent $62,500 that year at Costco to reach that certificate amount. With that said, anyone who spends less than $3,250, mathematically, will not receive a rewards certificate back that justifies the higher membership rate and is better off sticking to the $65 per year regular membership. Costco also highlights Executive Members' access to several other services and rewards that Gold Star holders are not eligible for. These include discounts or lower prices on services like check printing, or additional included benefits to programs like free roadside assistance for vehicles insured under Costco's auto insurance plans. 

Using your executive perks is all about maximizing what you'll be rewarded for. The most lucrative benefit, the 2% back rewards, has some restrictions on what accrues reward points. Shopping internationally in some countries, for instance, may not earn you rewards, and certain buys — like alcohol in many states, food court purchases, gasoline, prescription medication in certain states, tobacco, and stamps — are ineligible purchases towards the rewards bank. However, there are some benefits to buying your next TV at Costco or purchasing travel through Costco Travel since these big purchases count towards rewards accrual and will ensure you're reaching your full $1,250 back. You can also optimize your potential rewards by having the primary membership holder do the majority, if not all, the shopping. While memberships give two cards per household, only the primary member who's name is associated with the membership can earn the 2% back reward. 

All in all, there is a perfect customer storm that makes a Costco Executive membership worth it. First, if one person primarily shops in your family, and they are the primary cardholder. Second, you plan on booking some big vacations or plan on purchasing large electronics (or both). And third, you routinely spend more than $3,000 annually at Costco (families with children, here's looking at you) and use some of Costco's additional services like auto insurance. If this sounds like your lifestyle, then an Executive membership could be well worth your time and money.