Here's How to Get a Free Costco Membership Through Citibank

Considering all the deals Costco offers, the membership fee is more than fair. A Gold Star membership costs $60 per year, so it's not that expensive. But a free Costco membership is even better, and you can get one if you're a Citibank customer in the Citigold tier.

To temper expectations, there's a sizable balance requirement to become a Citigold customer. Fortunately, you can meet the requirement through combined balances on banking and investment accounts with Citi. Here are all the details.

How to get a free Costco membership through Citibank

Citibank offers annual subscription rebates to customers in its Citigold and Citigold Private Client tiers. Citigold requires a combined monthly average balance of at least $200,000, and it includes $200 in annual subscription rebates. Citigold Private Client requires at least $1 million, and it includes $400 in annual subscription rebates.

When you're in one of those tiers, you can enroll in the subscription rebate program. After you activate the benefit, you use your Citi debit card to pay for subscriptions with participating merchants. Citi will reimburse you for those subscriptions, up to the annual limit. Costco is one of the participating merchants, along with:

• Amazon Prime
• Hulu
• Spotify Premium
• TSA PreCheck
• Global Entry
• The Wall Street Journal and BLADE (Citigold Private Clients only)

Let's say you're a Citigold customer. Citibank will automatically reimburse up to $200 in subscriptions per year at those participating merchants. You could pay for a $60 Costco Gold Star membership or a $120 Executive membership and get it reimbursed. You'd also have the remainder to use with any of the other merchants on the list.

There are two ways to join the Citigold and Citigold Private Client tiers:

• Open a checking or savings account with Citibank and deposit enough to meet the balance requirement.
• Open multiple Citi accounts and reach the requirement through your combined balances.

The first option probably isn't the best idea -- $200,000 is more than most people need in their bank accounts. Most Citibank accounts also have very low rates. The exception is its Citi® Accelerate High-Yield Savings account, but this is only available if you live in an eligible area. If you don't, the rates you can get with Citibank will pale in comparison to what the best high-yield savings accounts offer.

The second option could work better. Citi has several investment account options. These include a self-directed brokerage account and individual retirement accounts (IRAs). If you have a sizable investment portfolio, you could transfer it to Citi to reach the Citigold tier.

More benefits of Citigold

Citigold has more to offer than a free Costco membership. Here are more of the benefits you get as a Citigold customer:

• Unlimited reimbursement of ATM fees at non-Citibank ATMs globally
• No monthly service fees for Citibank checking and savings accounts
• Citigold concierge service to help with dining, travel, and more
• Access to Citigold lounges and client centers worldwide
• Interest rate discounts on Citibank mortgages and personal loans
• Global market analysis and research reports for investors

Is Citigold worth it?

Citigold could be a good idea if you're already a Citibank customer or if you've been wanting to keep your banking and investment accounts under one roof. It requires a large financial commitment. But it offers some valuable relationship benefits if you can make that commitment.

It comes down to how you feel about Citibank. If you're not a fan, then a free Costco membership (even the vaunted Executive membership) isn't enough to justify parking $200,000 there. If you like Citibank and have enough to reach the Citigold tier, then by all means, go get your free Costco membership.