3 Things You May Not Know About Costco Executive Membership

Shopping at Costco is a great way to save money on everything from groceries to clothing to household items. And if you upgrade to an executive membership at Costco, you may find that you can save even more.

A yearly Costco Executive membership costs $130, which is twice the cost of a basic membership. In return, you get 2% cash back at Costco, which is a pretty good deal. In fact, the cash back can be enough to pay for an upgraded membership, or even more.

But if you’re thinking about upgrading your Costco membership, it’s important to know how the Executive program works. Here are a few things you might not know about the Costco Executive membership.

1. You can receive a reward of $1,250 per year

If you shop at Costco often enough, you can rack up a lot of cash back with an Executive membership. But you should know that once you earn $1,250, you won’t get the cash back for the year.

That said, to even qualify for the $1,250 Executive Membership reward, you’d have to spend $62,500 a year at Costco. That’s probably way more than you can imagine you might spend, even if you use Costco for things like booking travel or replacing furniture.

2. Online shopping matters

While Costco has an impressive selection of merchandise in its club stores, you can find even more items to choose from online. The good news is that online purchases are usually eligible for 2% back if you have an Executive membership, so don’t worry about those orders not counting.

3. Some purchases are not eligible for cashback

Unfortunately, not all Costco purchases earn Executive members cash back. For example, even though it might make sense to buy your next car through Costco, you won’t get cash back (which would make it much easier to earn the maximum $1,250!).

And while Costco has some great deals on spirits (their Kirkland wines are known for being cheap and high quality), you won’t get a refund on moonshine either.

Certain other goods and services are also excluded from cashback, so if you are interested in cashback, make sure your purchase qualifies before you buy.

Is a Costco Executive Membership Worth It?

The Costco Executive Membership certainly isn’t for everyone. If you don’t shop at Costco very often, it may not be worth paying the extra $65 per year. But either way, read up on how the upgraded membership works and what benefits it offers before you make a decision.

Also, remember that Costco wants you to be happy with your Executive membership. If you upgrade and find it’s not worth it, you can always downgrade to Basic and ask for a refund. You’re not locked into a more expensive membership, so it’s really a risk-free proposition if you want to try it.