You might ask how saving and Costco could go together, right? I mean, who needs to buy 100 rolls of TP and a 12-pack of toothbrushes. However, I’ve decided that a Costco Executive Membership is the best deal around, and it has more to do with saving than you might think.
An Executive Membership at Costco costs you $100 per year. But with this membership, you can get the following:
- You get 2% back on your purchases (even gas!)
- You can get a high-yield savings account through Capital One by being a Costco Member. You get $60 just for opening the account, and the current interest rate is 1.75%, which easily is on of the highest around (if you have $10,000 in savings, and switched from a 1% yield to this, you would earn an additional $75 per year)
- You can open a special ING Direct Sharebuilder account for your investments. You get $60 just for opening the account, and your automatic trades are 25% off, which is amazing because it lowers your commissions to $3 instead of $4 for these trades!
So, if you just opened these accounts, you would receive $120 in bonuses for your $100 membership investment…I think that is an amazing deal!
Beyond the Executive Membership, Costco now offers a whole bunch of money saving services. You can find the full list of Costco Services here: Costco Services List.
Some more of my favorite money saving Costco services include:
- Costco Loan Program or Mortgage and Refinance Program (You can see my Ultimate Guide to Shopping for a Home Loan)
- Costco Auto Buying Program
- Auto and Home Insurance
- Individual Dental Plans (it’s for California only, but it is great if you don’t get dental insurance at work)
Also, Costco has a ton of services for business. I’ve found these useful both online and offline:
- Business Checks and Forms
- Stationary
- Insurance
Finally, since I do have this online business, I’m considering using Costco for a 401(k). I can direct my self employment income into the 401k and save money on taxes each year.
Readers, what are your thoughts on Costco’s money saving services? Have you ever used them? Do you plan to?
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This post was written by...
Robert – who has written 317 posts on The College Investor.
Robert is the founder and editor of The College Investor, a personal finance site dedicated to young adult and college student finances. You can learn more about him here and connect with him on Twitter or Facebook.
{ 3 comments… read them below or add one }
Executive Membership at Costco is very important and very essential for savings… the bonus with executive membership is an added advantage…
Membership at costco is a needed one because here our brokarage in trading reduced to $3 from $4.
Applying for membership in Costco is a smart thing to do. The offer is very tempting: If you would open an account you would receive $120 in bonuses for your $100 membership investment. That’s a very nice deal!