6% APY: Is the New X Money Account Too Good to Be True?

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A savings account paying 6.00% APY would normally sound like a scam.

But in early March, actor William Shatner posted screenshots from Elon Musk’s new X Money app showing a 6.00% APY on cash. That’s about 50% higher than some of the best high-yield savings accounts, which pay around 4.00% APY.

X Money is in beta testing, and Musk has said that “early public access” will launch in April.

Should you try to sign up for X Money? And what is X Money, anyway? Here’s what we know so far.

What is X Money?

X Money is a payment platform that will be integrated with X (formerly known as Twitter). It’s similar to payment apps like Venmo and Cash App.

X Money will include:

• Interest-earning cash deposits

• A debit card that earns cash back

These are only the features that have been reported so far.

How does the 6.00% APY work?

Details are limited, but here’s what we know — and don’t know.

Deposits will be held by a bank, not by X

X Money has partnered with Cross River Bank to hold users’ funds. That means deposits are FDIC insured up to $250,000 per person. X Money will just be the app you use to manage your money.

The 6.00% APY could change — or have limits

Account APYs can change at any time, and they often come with strings attached.

For example:

• A bank may offer a limited-time promo APY to draw new customers

• The highest APY may require a minimum balance or monthly deposit

• The account may earn a high APY on the first few thousand dollars, then a much lower APY on any deposits above that

We don’t know if any of these apply to the X Money account. We don’t even know if the APY will still be 6.00% when X Money launches.

However, we do know that most high-yield savings accounts have requirements to earn their top APYs.

Who can sign up for X Money?

The details of the X Money launch haven’t been announced. We don’t know who can join X Money next month — and we don’t even have an exact launch date.

“Early public access” could mean “by invite only.” Or perhaps X Money will be offered to select X users.

People in certain states may be left out at first. Some sites have reported that X Money has obtained money-transmitter licenses in 40 states. If that’s true, then money may not be able to be sent to or from users in the other 10 states.

Don’t expect to get a 6.00% APY any time soon

We don’t know much about X Money yet, and it will probably roll out slowly. X Money should launch in April, and we’ll likely learn more then. Then you can decide if it’s worth signing up (or trying to).

For now, just make sure your savings are earning the highest APY possible. The best high-yield savings accounts today earn 4.00% APY or more, which is still about 10x the national average. And they all come from trusted, FDIC-insured banks.

Check out our full list of all the top high-yield savings accounts available now.

Don’t hold out for X Money just because Bill Shatner is excited about it. The sooner you switch to a high-yield savings account, the better.

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