Is the New X Money Account Too Good to Be True?

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:

• Peer-to-peer payments
• Interest-earning cash deposits
• A debit card that earns cash back
• Direct deposit

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).