Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
Costco shoppers, look out. The warehouse club plans to raise its annual membership fees.
The cost for basic membership for individuals and businesses will increase by $5, to $60, effective June 1. Executive membership fees will be $120, an increase of $10. About 35 million members are affected, the company said. It's the first fee increase at Costco since 2011.
Is the Costco Anywhere Visa® Card by Citi still worth it?
The increased dues essentially mean it'll cost that much more to carry the Costco Anywhere Visa® Card by Citi. Although the card has an annual fee of $0, you can't get the card without a Costco membership.
It's never fun to pay more for a service you've come to rely on. But for $5 more per year, the Costco Anywhere Visa® Card by Citi is still a pretty good value.
Our full review has all the details, but the rewards are worth repeating:
4% back on gas purchases at Costco and other gas stations (on up to $7,000 spent per year)
3% back on restaurants and qualifying travel purchases
2% back at Costco and Costco.com
1% back on everything else
Costco vs. Sam's
Even before this announcement, Costco fees were higher than those at Sam's Club, its main competitor, which charges $45 a year for a basic membership.
In a side-by side comparison, the Sam's Club® Mastercard® and the Costco Anywhere Visa® Card by Citi are basically equal. One has higher rewards here, the other there. The Sam's Club® Mastercard® has a better fee structure in general. But customers who prefer Costco and paid the higher fee before this announcement are unlikely to bail on account of another $5 a year.
