Which Costco membership is better for you: Gold Star or Executive?

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• Costco has two main membership levels: Executive, which costs $120, and Gold Star, which costs $60.
• Executive membership gives you a 2% return on qualifying Costco purchases and discounts on services.
• If you spend $3,000 annually, or $250 per month, at Costco, it's worth upgrading to Executive.

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I've been a Costco member for seven years, and for my family, making the trek to the warehouse-like store is an event. We go up and down every aisle, load up on samples, and often end up with an overflowing cart.

When I first joined Costco, I was an Executive member, which costs $120 per year but offers an annual 2% reward on most of your purchases. However, I found I wasn't spending enough to justify the pricier membership. So, I switched to the Gold Star membership ($60 per year). Since everyone is different, I've outlined the pros and cons of the two membership levels to help you make the best decision for your household.

Should you get a Costco membership at all?

The quality of Costco's curated products — like its famous Kirkland brand — makes it work considering. My family loads up on snacks, chicken, canned goods, coffee, household staples, seasonal clothing, and other favorites. We've even purchased laptops, car tires, appliances, and furniture at Costco.

Costco doesn't offer trial periods or tours, but it provides a "Risk-Free 100% Satisfaction Guarantee." This promise includes a full refund of your membership fee if you are dissatisfied.

Which Costco membership is best: Gold Star or Executive?

The Gold Star membership is Costco's basic membership. The main benefits are you can shop at any Costco store worldwide and access its services, including home and auto insurance, deals on vehicles and auto services, bottled water delivery, and Costco gas stations, which often beat competitor stations by 10+ cents per gallon.

There are ways to shop at Costco without a membership, but paying the $60 per year fee will likely save you in the long run. The fee covers membership for two people who live in the same household. If you want to add more people, you must buy an additional membership.

The Executive membership costs $120 per year and offers all of the above plus more. The main benefit is the annual 2% reward: 2% of qualifying purchases at Costco or Costco.com are refunded yearly as a certificate that must be used at Costco. That said, some purchases that don't count toward your reward are tobacco products, gas, stamps, gift cards, and alcoholic beverages. The maximum reward you can earn in a year is $1,000. Check out the full details:

Average per month

2% Annual Reward

As you can see from the chart above, you would need to make $6,000 in annual purchases to make back the cost of Costco's executive membership. While if you make less than $3,000 in Costco purchases per year, the Gold membership is your best bet.

Other Costco Executive membership benefits

• 15% discount and $15 enrollment fee waived for pet insurance
• No application or statement fees when you sign up for payment processing for your business through Costco
• Subscription to the monthly Costco Connection magazine
• 20% off the purchase of business and personal checks
• Identity protection for $9 per month (the Gold Star rate is $14 per month)

Who is an Executive membership good for?

I was an Executive member for four years and didn't sign up for any discounted Costco services, but if the services look enticing to you, the Executive level may be worth it.

An executive membership may be right if you:

• Have a large family: If you spend $6,000 annually, the Executive membership will pay for itself in rewards. This is easy to meet if you have frequent, large shopping trips.
• Run a restaurant or other small business: Many restaurants buy their supplies at Costco, making it easy to hit that $6,000 threshold. Plus, Costco offers Executive members significant savings on a number of business services, including payment processing.
• Are a teacher: Costco is great for buying bulk office supplies and snacks at a reasonable cost.
• Travel frequently: The 2% reward applies to Costco Travel purchases, so you could get 2% back on flights, rentals, hotels, and more.
• Plan on making major purchases: The reward money adds up when you buy expensive appliances, and it includes installed products, ranging from window treatments to flooring.
• Have costly prescriptions: Prescriptions costs not covered by your insurance are eligible for the 2% reward.

The bottom line

I recommend giving the Gold Star membership a try. You can get a full refund if it isn't worth it. If you find you love shopping at Costco and are spending more than $250 per month, you can upgrade to the Executive membership right away for a prorated fee. You really have nothing to lose.

James is a Senior Reporter for Business Insider Reviews, specializing in sleep, HVAC, and kitchen appliances. He has tested more than 90 mattresses from startups like Casper and legacy brands like Tempur-Pedic, using his background in experimental psychology to develop objective tests and evaluate comfort, support, motion transfer, and more. He authors our guide to the best mattresses. In addition to being Business Insider Reviews' mattress expert, James has extensively covered air fryers, bidets, air conditioners, air purifiers, and anything you put on your mattress, including weighted blankets and pillows. He's a multifaceted writer who has covered everything from health and fitness to consumer technology. His mission is to help people get the most value for their money by guiding them in making informed buying decisions. James lives in Lansing, Michigan, with his wife, two kids, and a kitty. When James isn't testing products and writing for Business Insider, he runs a popular local Facebook group, Lansing Foodies; hosts a local news segment called Foodie Friday; and puts on the Olive Burger Festival. Contact info: jbrains@businessinsider.com Learn more about how our team of experts tests and reviews products at Insider here. Learn more about how we test kitchen products.

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