Costco, one of their employees chatted me up about their Executive Membership and the 2% cash back rewards. For some reason, I agreed.
The employee explained my cash back rewards the first year would be small due to the late enrollment date. The reward is issued in January and I think I enrolled sometime that Fall.
Additionally, because my enrollment date was later in the year, the membership fee was prorated. When I received the first rewards certificate, it was a tiny amount, but I decided to keep the executive membership for one more year.
A few weeks ago, I received this year's rewards certificate and here is the breakdown of rewards vs. membership fee:
Rewards Certificate: $ 98
Executive Membership: $110
Difference: - $ 12
My initial reaction was "I paid more than I got back in rewards", so I made a mental
note to cancel before the March 31st deadline.
Now, maybe you were quicker than me to figure out I was not doing the math correctly, but just in case we were on the same page of denial, here is the realization I came to today, after some basic number crunching:
Costco Membership Comparison
Gold Star Executive
Membership Fee $55 $110
Rewards - $ 0 - $ 98
Total Membership Paid $55 $ 12
Yes, with the Executive Membership I paid just $12 versus $55 for the standard, Gold Star membership.
So, looks like I will be keeping my Executive Membership, as long as my membership rewards exceed $55 annually. Oh, and apparently, there are other advantages to the Executive Membership, including reduced fees ($600 or less) for mortgage refinancing. I wish I had checked that feature out when I was researching my mortgage refi. Pfft!
Disclaimer: I was not given any incentive or payment for this review.