Image source: Upsplash/The Motley Fool

There are of course all sorts of great things to be said about shopping at Costco. The prices are tough to beat, the selection is beyond impressive, and the unique things you can discover there are, well, unique. Given all of that, if you shop at Costco regularly, you may be tempted to sign on for an Executive membership.

Should you?

Its $130 cost is double that of the Gold Star membership, but you’ll be eligible to receive substantial exclusive benefits that could make it very easy to maximize your Costco spending.

Here are three things you may not know about the Costco Executive membership.

1. The 2% rewards discount is great, but there are limits

The best part of having an Executive membership is that it gives you a 2% reward on most of your Costco and Costco.com purchases, as well as Costco Travel expenses (see below). This means that for every dollar you spend at Costco, you get back a credit of $0.02. That may not seem like much, but if you are a regular Costco shopper, it adds up.

You can earn even more on your Costco spending with the right credit card. Click here for the best cards for Costco shoppers.

The 2% reward is issued once a year as a credit that you can use toward Costco purchases. For example, my wife and I spend about $500 a month at Costco. So 2% of that $6,000 comes back to us as a $120 Costco credit once a year. Sweet!

For frequent shoppers like us, or those who make larger purchases (say, appliances or electronics), this reward can actually offset the higher cost of the Executive membership fee. In my case for example, that $120 almost pays for it entirely. The more you shop, the more you earn back, making this one of the most attractive perks for Costco’s top-tier members.

But you need to know about two limits on the 2% reward: You can only earn back a maximum of $1,250 per year, and the reward doesn’t apply to all Costco purchases. While it sure would be nice to get 2% cash back if you bought a car through the Costco car-buying program, you do not Pass Go and you do not collect $200 here. Car purchases are not included in this perk. Similarly, alcohol purchases in some states and even Costco gas are exempt from a 2% reward.

2. You get impressive travel discounts with Costco Travel

While all Costco members have access to its travel service, this is where the Executive membership really shines. Aside from a few caveats and exceptions, Costco Executive members earn the 2% reward for travel purchases. Again, this alone can make the Executive membership worth the price of admission.

Here’s the fine print from the Costco website: “For Executive Member purchases made directly from Costco Travel, a 2% Reward will be earned and applied after travel is completed. You must be an Executive Member when travel starts.”

And if you want even more discounts, look especially at the Costco travel bundles. “Buyer’s Choice” packages the most popular accommodations and travel options into vacation bundles, thereby ensuring the best Costco member savings.

3. A couple of extra little perks sweeten the deal

There are a few other little-known benefits that add even more value to the Executive membership. They include:

• Lower prices on check printing
• Roadside assistance for free for cars covered through the Costco auto Insurance program
• A monthly mailed edition of The Costco Connection magazine.

So yes, the upgraded Costco membership has a lot going for it. Between frequent shopping trips and/or buying large items or travel packages, the reward discount makes Executive membership well worth the cost.

Top credit card to use at Costco (and everywhere else!)

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.