Gold Star Vs Executive Costco Memberships: The Difference, Simplified

With endless shopping options bombarding from the digital world, sometimes it's nice to put on some good walking shoes and trek the aisles of a simple, old-fashioned, physical membership warehouse. Costco definitely fits that bill — unless you get bogged down in the fine print of membership levels. Fortunately, Costco keep it fairly uncomplicated with only two options for personal membership, plus one for businesses. 

Within that personal category, you only need to choose from the Gold Star or the Executive Membership levels, which mostly come down to price and a few extra perks for shelling out more. In a nutshell, the Gold Star card get you in the door for $65 annually, while the Executive card gives you the same benefits for an upgrade fee of an additional $65, resulting in a total cost of $130. At first glance, the main benefit of going Executive is accumulating 2% rewards kickback for all qualified purchases. 

Both memberships provide the same discount on everyday purchases like groceries, household and garden supplies, clothing, and all the goodies that shoppers love snatching up in bulk quantities, even when Costco shopping as a single person. Each membership level also provides access to considerable discounts at Costco Travel, a free card for an additional household member, and shopping privileges at any Costco across the country or the world. So really, when joining Costco for the first time, the 2% rewards program is what rings the "worth it" bell for Executive upgrading. However, nuances do arise, plus some little-known additional Costco Services perks.

When shopping at Costco, Executive Members stand to accumulate a pretty hefty kickback every year. The 2% reward structure can add up quickly, but do be aware that it tops out at $1,250 in rewards during every 12-month period. If big-ticket items such as tires, electronics, or travel are on the horizon, you're in luck with this membership. At a price of $130 instead of $65, the calculation breaks down like this: Anything over $6,504 in qualified Costco purchases means you're recouping the $130 membership fee. If you were to somehow spend $62,500, you'd hit the yearly annual cap of $1,250 in total rewards

It's important to note that several things don't count toward the 2% reward — mostly extras outside typical grocery and supply shopping. Exclusions apply to tobacco products, gasoline, food court purchases, postage stamps, membership fees, alcohol, and prescriptions in certain states, and more. Another thing to consider when gauging Executive membership benefits is that no rewards apply when purchasing from affiliated companies, even ones clicked through from Costco.com.

The things you do get, however, can easily justify the extra $65 jump from Gold Star to Executive level membership. In addition to the 2% reward on most shopping, the rewards stack up for travel booked through the Costco Travel website, whether hotels, cruises, rental cars, or package deals including airfare. Executive members also qualify for additional Costco Travel products, plus exclusive discounts on what's called Costco Services, which range from insurance to business and home improvement services.