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Many money-conscious people like to shop at Costco. The warehouse club has members-only deals that can offer significant savings. But you have to invest in an annual membership to shop there. Membership prices have remained steady for several years.
However, membership costs are going up. Will a Costco membership be worth the new higher fee? For most people, the slightly higher membership fee will be worth paying because of the savings they can get and the benefits provided.
Memberships are going up $5 to $10 per year
Currently, Costco memberships cost $60 to $120 annually. The standard Gold Star membership costs $60 annually, and the premium Executive membership costs $120 annually.
But that's about to change in the coming months. The retailer recently announced upcoming price hikes. Beginning on Sept. 1, 2024, a Gold Star membership will cost $65 annually, and an Executive membership will cost $130.
Some shoppers may be disappointed to learn about the $5 to $10 membership cost price hike. If you're a current member or have considered joining, you may wonder if shopping at Costco is worthwhile. The answer is yes. Let me explain why.
The discounts and benefits are worth the increased cost
You'll pay more when you renew your membership or join Costco on or after Sept. 1, 2024. If you're trying to decide whether the annual membership expense is worthwhile, consider the potential savings you can get from shopping here and the benefits you can access.
The membership perks are plentiful. Here are a few highlights that are available to all members:
- Shop members-only discounts on gasoline, groceries, household goods, clothes, electronics, toiletries, beauty products, baby care essentials, and more.
- If you're unsatisfied with an item you buy, Costco has a generous return policy, allowing you to get a refund for most purchases.
- Get two membership cards with each membership, which allows an additional household member over 16 to shop at Costco without the primary member being present
You can access even more perks if you pay for a pricier Executive membership:
- Earn 2% rewards on eligible Costco purchases, including Costco Travel bookings
- Get additional savings and extras on services like check printing and car rentals booked through Costco Travel
There's some good news for Executive members
When membership fees increase, Costco will make another change that will benefit Executive members. As mentioned above, Executive members earn 2% rewards on eligible Costco purchases, including travel.
Members can currently earn a maximum of $1,000 per year in rewards. But with the membership price increase, Executive members can earn up to $1,250 in annual rewards.
For regular Costco shoppers who spend a lot of money annually, being able to earn an additional $250 in rewards is welcome news. Paying an extra $10 per year for the great deals and valuable benefits is worth it.
If you like to save money, take advantage of the opportunity to earn more rewards when you shop at Costco. Before you pay for your purchases, consider which credit card to use.
Our favorite strategy to save money at Costco is to use a rewards credit card at checkout. You can earn valuable rewards like cash back when you load up on essentials. Earning credit card rewards can maximize your savings. Review our list of the best Costco credit cards to learn more.
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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool has a disclosure policy .
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