Costco is a popular warehouse club in the United States, and while millions of Americans shop there, the annual membership fee is a key consideration for consumers. The company offers two primary membership tiers: Gold Star, with an annual fee of $65, and Executive, with an annual fee of $130. The main difference between these tiers is that Executive members earn 2% back on eligible purchases and receive additional discounts on select services. A Costco membership is not free, and for some individuals, the annual fee can present a barrier to entry. However, dedicated shoppers often find that the membership pays for itself through significant savings on a wide range of products.
The potential for savings is substantial. Many of these savings accumulate over time, such as purchasing fuel or buying water bottles in bulk. In some cases, specific items alone can save a member enough to cover the entire annual fee in a single transaction. For example, the savings on pet food and flea medicine can make a membership worthwhile. One individual reported saving $30 per month, or $360 per year, by obtaining their dog's prescription medication at Costco instead of through a veterinarian. While a membership is not required to use the Costco pharmacy, a Costco card can lead to larger discounts on medications.
For parents, the savings on baby essentials can be particularly impactful. A commenter on the Costco subreddit noted, “Got our membership when the kids were little and just diapers and formula saved us $100 a month.” This highlights how recurring purchases for diapers, wipes, and baby formula can lead to substantial long-term savings that easily offset the cost of a membership.
Understanding Costco Membership Tiers and Perks
Costco provides two distinct membership options for consumers, each with its own set of benefits and cost structure.
Gold Star Membership Priced at $65 per year, the Gold Star membership is Costco’s entry-level option. Despite being the basic tier, it offers substantial value. New Gold Star members who enroll in auto-renewal may receive a $20 Digital Costco Shop Card as a welcome bonus, which helps to offset the first year’s membership cost. The Gold Star membership grants access to all Costco warehouse locations worldwide and allows for online shopping at member pricing. Each membership includes one free Household Card for another person in the same household who is 16 years or older. Additional benefits include access to special pricing on gas, pharmacy, and travel services. Members automatically receive a monthly Costco Savings Booklet. Costco also offers a risk-free satisfaction guarantee on both merchandise and membership.
Executive Membership The Executive Membership is priced at $130 annually. This tier is designed for members who spend more than $270 per month at Costco, as the 2% rewards can cover the $65 upgrade cost from Gold Star. Executive members earn 2% back on all Costco and Costco Travel purchases, with a cap of $1,000 in annual rewards. This means members could potentially save up to $1,000 yearly simply by shopping as they normally would. In addition to the rewards, Executive members gain access to exclusive deals and services that are not available to Gold Star members. New Executive members who sign up for auto-renewal often receive a $40 Digital Costco Shop Card as a welcome bonus.
Digital Shop Cards and New Member Incentives
Digital Costco Shop Cards function like cash and can be used for future purchases both in-store and online. The amount of the shop card varies by promotion and membership tier. New members who enroll in auto-renewal frequently receive these digital cards as a welcome incentive. Recent offers have included $20 for Gold Star members and $40 for Executive members.
Special groups, including teachers, students, military personnel, first responders, medical professionals, and government employees, can often obtain a $20 Costco Shop Card after verification through services like ID.me or SheerID. This serves as an additional perk for those in community-serving professions.
Price Match Guarantee
Costco’s price match policy is noted for being particularly effective, as it covers items that a member has already purchased. If a product purchased at Costco goes on sale shortly thereafter, Costco will credit the member the difference between the original price and the promotional price. This policy ensures that members receive the best available price even if they buy an item just before a discount is applied.
Scam Warnings: Fake Costco Stimulus and Freebie Offers
Consumers must be aware of fraudulent text messages and online scams impersonating Costco. The FBI and other authorities have issued warnings about these schemes, which prey on individuals seeking financial relief or free products. These scams are not associated with Costco in any way.
Nature of the Scam Scammers send unsolicited text messages promising Costco “freebies,” “stimulus checks,” or “stimulus packages” in amounts ranging from $100 to $130. These messages often claim the offer is part of a Covid-19 stimulus package for loyal Costco customers. The texts typically include a malicious link and request that the recipient fill out a survey to receive the promised reward. Examples of fraudulent messages reported include: * “$100 bounty from Costco! That’s the stimulus check for Costco loyal customers: a7es[.]info/7tkxz6CbFh fill in survey in return please!” * “$110 rewards from Costco! That’s the stimulus check for Costco loyal customers: a7es[.]info/7tpzJW7i05 fill in survey in return please!” * “$130 freebies from Costco, that’s our Covid-19 stimulus package for all loyal Costco members! a6er[.]info/7KpuB2cVtG fill in customer survey in return please”
Official Stance from Authorities The San Diego FBI office has explicitly stated, “Costco is NOT texting (or using social media platforms) the public or its customers to provide a ‘stimulus check,’ ‘freebies,’ or a ‘stimulus package.’ These messages, containing a malicious link, are a #SCAM. Do NOT click on the link.” The FBI announced that fraudsters are sending out these bogus messages, and similar hoaxes are likely to appear in the future.
Target and Impact These scams are designed to prey on people who are feeling vulnerable, especially during times of economic uncertainty. The promise of $130 of free groceries is tempting, as it could allow a family to stock up and reduce the frequency of shopping trips. According to reports from sources like the Instagram account CostcoDeals, the scam has been targeting older individuals, who may be less familiar with digital fraud tactics. It is important to share this information with friends and family members who might be more susceptible to such schemes.
Conclusion
A Costco membership can offer significant value through savings on bulk purchases, including baby products, pet supplies, and prescription medications. The choice between a Gold Star and Executive membership depends on an individual’s spending habits, with the Executive tier offering 2% rewards that can offset the higher fee for frequent shoppers. New member incentives, such as Digital Shop Cards, further enhance the value proposition.
However, consumers must remain vigilant against scams that impersonate Costco. Official Costco communications do not include unsolicited text messages offering stimulus checks or freebies. Any such message is fraudulent and should not be engaged with. Always verify offers directly through Costco’s official website or by contacting customer service.