This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.
Thinking of signing up for a Costco membership? Read on to see why that could be a great idea.
Image source: Getty Images
For some people, the decision to join Costco is an easy one. And if you’re someone with a big family to feed and a larger home to maintain, then you may come to the conclusion that a Costco membership makes a lot of financial sense. But just in case you’re on the fence, here are a few perks that come with a Costco membership that you should know about.
1. Extended warranties on electronics
It’s common for electronics to come with a one-year warranty so you’re protected in case your devices fail or malfunction shortly after buying them. But Costco takes that protection one step further by upgrading customers to a two-year warranty on electronics.
That added protection is applicable to products that include laptops and TVs. And it could give you the peace of mind you deserve when you’re splurging on a product to make your life or job easier.
2. Travel services
Not only can travel be expensive, but you may not have the time to put together a vacation package that gives you access to airfare, ground transportation, lodging, and entertainment. Costco can come to the rescue with its travel services — a feature all members can capitalize on. You can browse different vacation packages online or call and speak to a Costco Travel representative who can help you narrow down your options.
3. Same-day grocery delivery
Some people find the process of navigating the aisles at Costco overwhelming. Others may not have access to a car. Enter same-day grocery delivery from Costco. Though you’ll pay extra for this service, you’ll get the option to have hundreds of products delivered to your door so you don’t have to leave the house, from fruits to proteins to dairy products. And you’ll also save yourself some money on gas by not having to make a trip to the store.
4. The option to use your membership at any location
As of July 19, 2023, Costco was operating 590 warehouse club locations in the U.S. and Puerto Rico. As a member, you get access to any Costco store of your choosing. This means that if you’re traveling or working remotely from another city for a period of time, you can load up on affordable groceries and supplies without having to rack up a giant credit card tab.
5. Cash back on your purchases
Your local supermarket may not be giving you cash back on your groceries — but Costco will if you upgrade to an Executive membership. In fact, Executive members get 2% back on all Costco purchases they make, whether it’s food, cleaning supplies, or appliances.
You will pay an extra $60 to upgrade from a basic Costco membership to an Executive membership, bringing your total annual cost to $120. But if you do a lot of shopping at Costco, you might easily come out ahead financially after making that upgrade. If you spend at least $3,000 a year at Costco, getting an Executive membership makes financial sense.
A Costco membership isn’t for everyone. But if you’re thinking about signing up, make sure to keep these benefits in mind when finalizing your decision.
Alert: highest cash back card we’ve seen now has 0% intro APR until nearly 2025
If you’re using the wrong credit or debit card, it could be costing you serious money. Our experts love this top pick, which features a 0% intro APR for 15 months, an insane cash back rate of up to 5%, and all somehow for no annual fee.
In fact, this card is so good that our experts even use it personally. Click here to read our full review for free and apply in just 2 minutes.
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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.
