NYDFS tells X Money to scrap interest payments on balances from October 1

New York’s financial regulator (NYDFS) has informed X, owned by Elon Musk, of its inability to pay interest on X money balances belonging to New York customers. NYDFS went on to say that the yield on such accounts will drop to 0.00% on October 1, 2026.

The announcement yanks one of X’s major perks from its users in what many would consider the largest financial market in America, barely weeks after X Money was launched across the country.

APY falls to zero as X never obtained a New York license. 

Sawyer Merritt spotted the change and stated so in an X post on September 1, 2026. According to the post, the New York Department of Financial Services (NYDFS) informed X that it cannot pay interest on X Money balances and that New York accounts will receive no interest as of October 1.

X Money relies on yield as a marketing tool to attract users. When X Money was launched, it advertised a 6% APY for Premium Plus subscribers, while standard Premium users would enjoy such a rate once their deposits crossed a particular threshold or met a direct-deposit requirement. 

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