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For frequent Costco shoppers, an executive membership is worth the money. 

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When you get a Costco membership, you have two options: gold star or executive. A gold star membership costs $60, and an executive membership costs $120. Since they both offer access to all Costco warehouses, you may wonder if it makes sense to spring for an executive membership.

There’s a good chance the answer is yes. A Costco executive membership doesn’t just get you a stylish black membership card; it also has a few big perks, and they could save you a lot of money.

1. Annual 2% reward

The most valuable perk of a Costco executive membership is the annual reward. With this type of membership, you earn 2% back on qualified Costco, Costco.com, and Costco Travel purchases. The maximum benefit amount is $1,000. It’s paid as Costco Rewards, meaning rewards that you can use at Costco.

Let’s say you spend $250 per month at Costco. That’s $3,000 per year — good for a $60 annual reward, which is enough to cover the added cost of an executive membership. If you spend $500 per month, that’s a $120 annual reward.

You can also pay with rewards credit cards at Costco and earn even more. For example, if you pay with a card that earns 2% cash back, you’re effectively getting 4% back total. Just keep in mind that Costco only accepts Visa credit cards.

2. Additional benefits and savings on Costco Services

Costco Services allows you to find service providers and take advantage of discount offers available to Costco members. Here are some examples of what you can find through Costco Services:

Auto insuranceHomeowners insuranceNew and pre-owned vehicles through the Costco Auto ProgramPet insuranceBusiness payment processing

All Costco members have access to these services, but an executive membership has more to offer. For example, executive members may get lower prices on check printing and auto purchases.

3. Extra benefits on select Costco Travel products

Costco Travel allows members to book vacation packages, flights, hotels, and car rentals. Although this is available to all Costco members, there are also benefits solely for executive members. Here are a few examples of these extras:

Resort spending creditsResort spa creditsShipboard credits on cruisesFree massages

Also, as mentioned above, executive members earn 2% on Costco Travel purchases. If you love to travel, booking trips through Costco is a great way to boost your annual reward.

One other benefit you get with a Costco executive membership is Costco Connection magazine. This has product advertisements, interviews, and recipes. It’s not a personal finance perk, but it’s a nice extra if you’d like to add some reading material to your coffee table.

Considering it only costs an extra $60, a Costco executive membership is a bargain. You’ll probably make up that extra cost with the 2% reward. You’ll also benefit more if you use Costco Services and Costco Travel. You can sign up for an executive membership online or in stores. If you’d like to upgrade your membership, you can do so online, by phone, or in-person at Costco.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and Visa. The Motley Fool has a disclosure policy.

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