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Make 3% With Sears’ Christmas Club

Here’s a way to earn 3% on some of your money between now and the end of November.

Sears has created what it calls the Christmas Club.

Sign up by Oct. 31 at any Sears or Kmart store, or online at No money is required to open an account.

Sears Chrismas Club

Now figure out how much you can smartly spend at Sears or any of its affiliated stores — Kmart, the great indoors and Lands’ End — by the end of the year.

Hit the stores or Web sites and total up everything from holiday gifts to that new refrigerator or HDTV you’ve been planning to buy.

Deposit that amount in your Christmas Club account by Nov. 14 and Sears will add a 3% bonus to your balance by Nov. 25.

Since the store caps the bonus at $100, that means you can earn 3% on deposits of up to $3,333.

We know this is just a clever marketing gimmick from Sears. But let’s face it. You can’t earn 3% a year with most CDs and money market accounts right now.

If you only tie your money up in the Christmas Club account for a month, that works out to a very lucrative annualized return of 36%.

Your balance is put on a gift card that has no fees and never expires, so you can take as long as you like to spend it all. But the longer you take, the lower your return.

That’s why we think you should only deposit as much as you plan to spend before Jan. 1.

Comments (4)
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4 Existing Comments
  1. Avery said:
    on October 9th at 09:50 am

    So we should apply for a Christmas club card?It is just like a credit card,no good for people,because we will spend more when were given a card.

  2. gotojail said:
    on October 11th at 02:12 pm

    good deal for others but not a good investment for me since i never shop at those stores. unless there is a way to cash out on the balance but there doesn’t seem to be (checking on refund on gift card balances laws by state)

  3. d zar said:
    on September 27th at 08:23 am

    You need to update!!!!!

  4. CardMogul said:
    on September 28th at 09:42 am

    We did update this post, back in August. And you’ll find that Sears is offering a very similar deal again this year. Just click here to read Sears Christmas Club Back With 3% Bonus.