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Costco is raising its membership fee on September 1. Is an annual membership still worth it?

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Costco is raising its membership fee on September 1. Is an annual membership still worth it?

Many budget-conscious people like to shop at Costco. The warehouse club has members-only deals that can provide significant savings. But you have to invest in an annual membership to shop there. Membership prices have been stable for several years.

However, the cost of membership is going up. Is a Costco membership worth the new, higher cost? For most people, the slightly higher membership fee is worth it for the savings they can get and the benefits they receive.

Memberships will increase from $5 to $10 per year

Currently, Costco memberships cost $60 to $120 per year. The basic Gold Star membership costs $60 per year and the premium Executive membership costs $120 per year.

But that’s all set to change in the coming months. The retailer recently announced that prices are set to increase. Starting September 1, 2024, Gold Star membership will cost $65 per year and Executive membership will cost $130.

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Some shoppers will be disappointed to hear about the $5 to $10 increase in membership fees. If you’re a current member or are considering joining, you may be wondering if shopping at Costco is worth it. The answer is yes. Let me explain why.

The discounts and benefits are worth the higher cost

You’ll pay more when you renew your membership or join Costco on or after September 1, 2024. If you’re trying to decide whether the annual membership fee is worth it, consider the potential savings you can get by shopping here and the benefits you’ll have access to.

The benefits of membership are numerous. Here are a few highlights available to all members:

  • Take advantage of members-only discounts on gas, groceries, home goods, clothing, electronics, toiletries, beauty products, baby care products and more.
  • If you are not satisfied with an item you purchase, Costco has a generous returns policy, offering a refund on most purchases.
  • Receive two membership cards with every membership, which allows an additional family member age 16 or older to shop at Costco without the primary member being present.

You will have access to even more benefits if you opt for a more expensive Executive membership:

  • Earn 2% rewards on qualifying Costco purchases, including Costco Travel bookings
  • Enjoy additional savings and perks on services like check printing and car rentals booked through Costco Travel

There is good news for the board members

As membership fees increase, Costco will make another change that benefits Executive members. As noted above, Executive members will earn 2% rewards on eligible Costco purchases, including travel.

Members can currently earn up to $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 each year, the opportunity to earn an extra $250 in rewards is welcome news. It’s worth paying an extra $10 a year for the great deals and valuable perks.

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 you want to use.

Our favorite strategy for saving money at Costco is to use a rewards credit card at checkout. You can earn valuable rewards, like cash back, when you buy essential products. Earning credit card rewards can maximize your savings. Check out our list of the best Costco credit cards to learn more.

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