What to know about a Costco membership: Perks, fees and more
If you’re considering a Costco membership, here’s what you should know about annual fees, benefits and more.
Every Costco member has access to benefits like discounted contact lenses, travel packages and more, with greater savings on Costco services and select travel packages available to Executive members.
Costco is perhaps best known for its bulk discounts on groceries and other household essentials, with deals ranging from a two-pack of 1 ½-liter bottles of Listerine to a 30-pack of Lorna Doone Shortbread Cookies.
Costco also has its own popular in-house brand, Kirkland Signature. Some of Costco’s best deals are on Kirkland Signature products: A 120-pack of Breakfast Blend K-Cup Pods, for instance, is $37.99, while a 48-pack of Folgers K-Cup Pods — less than half the quantity — is $32.99. And Kirkland Signature offerings go well beyond food and groceries — under the Kirkland name, Costco also sells clothing, vitamins, beauty and skin care items, pet food, pans and more.
Costco members in certain areas have access to same-day delivery via Instacart to have perishables delivered to your door. But if you’re taking home your own groceries (or anything, really), you need to bring your own bags. I personally prefer to bring large boxes since they’re easier to carry up the stairs to my condo.
Outside of groceries and home essentials, Costco is known for its comparatively low gas prices. The conglomerate sells its own Kirkland Signature Gasoline, which is designed with deposit control additives to help clean your car’s engine and keep it running smoothly, according to the company. You can find nearby locations with gas stations via Costco’s website.
Whether you need a couch, an air fryer, a TV or running shoes, Costco has a vast selection of clothing, furniture and other home essentials from popular brands like Adidas, Casper, and LG. With a Costco membership, you also get in-home delivery and installation on major appliances as well as a two-year Costco extended warranty. Costco also constantly offers additional markdowns on certain brands and products, so make sure to check its website for promotions.
Through Costco Travel, members can book car rentals, vacation packages, cruises, hotel stays and more, but only with Costco’s travel partners — when booking a car, for instance, you can only choose from Alamo, Avis, Budget and Enterprise. And Costco’s prices aren’t always the cheapest available, so compare across booking sites before making reservations.
A Costco membership can score you discounts on new and pre-owned vehicles. The Costco Auto Program will connect members to local, pre-vetted pre-owned-vehicle dealers offering prearranged pricing for Costco members. If you already own a car, Costco also sells discounted tires (which come with a five-year Road Hazard Warranty) and batteries and offers services like rotations, balances, nitrogen tire inflation and more.
Costco provides discounted home and auto insurance to members through CONNECT, powered by American Family Insurance. Like other insurance providers, CONNECT offers additional discounts for students, safe drivers and more. Costco also sells health and vision insurance, life insurance and pet insurance, and certain plans are available for business owners as well as individuals.
Anyone can fill their prescriptions at a Costco Pharmacy, often at a competitive price compared to other pharmacies. Costco also offers the Costco Membership Prescription Program to members at no additional charge — it gives access to savings on prescriptions, though you cannot use it on top of your health insurance.
If you’re remodeling your house, redoing the floors or looking to install some new shelves, members can book these and other home services through Costco. When you work with one of Costco’s partners, you receive a Costco Shop Card worth 10% of the cost of the service. I worked with Costco to install new shelves, for instance, and got a $350 gift card that paid for a month’s worth of groceries.
Costco has a Photo Center where you can print posters, photo books, calendars, cards and more.
Costco members have exclusive access to the Costco Anywhere Visa card, a Citi credit card with a robust rewards program. In addition to 2% cash back on eligible purchases from Costco, cardholders also get 4% cash back on eligible gas purchases up to $7,000 per year, 3% cash back on restaurants and eligible travel purchases and 1% cash back on everything else, distributed annually. Keep in mind that your Costco membership has to be active and the rewards can be used at Costco or exchanged at a warehouse for cash. There are some other credit cards with great rewards for Costco purchases to also consider, like the Chase Freedom Unlimited card and the Wells Fargo Active Cash Card.
If you are currently weighing the pros and cons of a Costco membership, then it’s likely that you’re also considering what other warehouse clubs like BJ’s and Sam’s Club have to offer. Here are two of the biggest differences to consider:
The BJ’s Inner Circle Membership is similarly priced to Costco’s Gold Star Membership at $55 a year. Unlike Costco, though, BJ’s accepts manufacturer’s coupons and you can stack them on top of the store’s built-in savings.
Sam’s Club’s basic membership is also similar in price at $50 a year. However, it has more limited service offerings than Costco — it doesn’t include pharmacy savings, optical savings or free shipping online, for example.
Morgan Greenwald is a former editor for NBC Select, who covered home, wellness, sales, gift guides and more.
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