X Money can’t pay New Yorkers interest, gives them a $300 ‘bonus’ instead

This week, the New York Department of Financial Services (NYDFS) informed Elon Musk’s X Money that it cannot continue to pay bank account-like interest on non-bank account deposits of New York residents.

To avoid capital flight from the country’s wealthiest metropolis, X Money offered New York residents a $300 “direct deposit bonus” as “interim compensation,” which it repeatedly insisted “does not constitute APY or interest.”

X Money doesn’t offer bank accounts in New York. Instead, it says it’s a product for New York customers to “earn yield,” “get cashback,” “send wires,” “mail checks,” and “pay your bills,” with “free ATM withdrawals” while “protected with FDIC coverage.”

It holds New Yorkers’ money in a product called a “stored value account” that allows customers to “obtain interest” through September 30 on their money then “earn a $300 bonus” after October 1.

These payouts aren’t any type of bank account interest.

Read more: Crypto influencer Tiffany Fong rejected Elon Musk’s baby-making offer, report

… Continue reading the full article at the original source below.