X Money: banned accounts keep funds, Premium+ earns 6% APY

After X Money launched last month, users quickly asked what happens to their funds if X suspends or closes their social media account. Under X's updated suspension policy, in most cases nothing — access to every X Money feature remains "with no interruption."

The exceptions are suspensions for Child Safety or Violent and Hateful Entities violations. In those cases, access to Money is revoked and the remaining balance is returned by check. X states that an account suspension will not result in funds being forfeited.

The most compelling reason to use X Money is the interest rate. Premium+ subscribers earn 6% APY on eligible balances. Premium subscribers get 4%, rising to 6% after at least $1,000 in qualifying direct deposits, including payroll or X Creator payouts, within the preceding 34 days.

That compares favorably with many leading online savings accounts, which currently hover around 4%, and far exceeds the 3.5% APY from Apple Card Savings. Subscribing solely for the higher rate is less attractive, but for existing Premium or Premium+ customers it is a competitive place to hold cash. Eligible X Card purchases also earn 3% cash back.

X Money is not an FDIC-insured bank. Deposit accounts are provided by Cross River Bank, Member FDIC, with standard $250,000 coverage. An optional sweep program distributes larger balances among participating banks, designed to provide up to $10 million in total FDIC coverage, though X notes individual placements are not guaranteed to stay below each bank's insurance limit.

Every customer receives a virtual Visa debit card that can be added to Apple Pay. Physical metal cards are now reaching early users. The physical card omits its number, expiration date, and security code. Customers can customize how their name appears and may include their X handle, but neither is required. Initials are allowed if a full name is not desired. The virtual and physical cards use separate card numbers.