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[READER QUESTION] Whether it is Worth Getting the Costco Executive Membership (expired on December 31, 2014)

For those of you who may not be aware, Costco has two levels of membership, Executive and Regular.

Currently, there is a 1,500 Aeroplan sign up bonus promotion for Executive members ($110 annual fee), while Regular members ($55 annual fee) will earn 1,000 bonus points. The sign up bonus offer is for a new Costco membership only, may not be combined with any other promotions and expires December 31, 2014.

The main difference between the two memberships is that Executive members get to earn a 2% return on most Costco purchases (up to a maximum of $750 per year). To earn the full $750 back, you need to have spent $375,000, which is probably very difficult to achieve anyway. But for calculations sake, we just need to determine the break-even point.

Executive members pay $110 annual fee, which is $55 more than a regular member. That means you just have to justify the excess $55. If you can spend $2,750 per year (or around $230 per month), you will get $55 cash back. Therefore, if you can spend more than $2,750 per year, it may be more worthwhile to get the Executive membership. Always do the calculations first to determine whether it is worthwhile fory ou.

Costco is also currently offering 3x the Aeroplan when you shop online. This promotion is good from November 25 to December 1, 2014.

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Pointshogger aims to provide analysis and updates on earning loyalty reward points and maximizing the value of your points. We hope to inspire our readers to experience the joy of travel and make the most out of what they've already got!

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