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Sears Christmas Club Back With 3% Bonus

The Sears Christmas Club is back and paying the same 3% bonus as last year.

Sign up by Oct. 31 at any Sears or Kmart store, or online at

No money is required to open an account.

Then figure out how much you can smartly spend at Sears or any of its affiliated stores — Kmart, the great indoors and Lands’ End – between Thanksgiving and 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.

You have until Nov. 15 to build up the balance in your account. Whatever you’ve save as of 11:59 p.m. EST on that date will earn the 3% bonus.

Since the store caps the bonus at $100, that means you can take full advantage of the bonus on balances up to $3,333.

We know this is just a clever marketing gimmick from Sears. But let’s face it. You can barely earn 3% a year with the best 5-year CDs.

Lets say you open an account now, but wait until this fall to commit any money. If you put the entire amount you’re planning to spend at Sears this holiday season into a Christmas Club account one month before the bonus is paid, you’ll make 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.

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