By OBBM Network Editorial Staff

Derived from an episode of Epic Real Estate.

Imagine earning 6% interest on your savings account, with the added perk of 3% cash back on everyday spending. Sounds too good to be true, right? But that’s exactly what Elon Musk’s new X Money account promises. As Matt Theriault of Epic Real Estate notes, the account’s headline-grabbing 6% yield comes with a catch: you need to direct deposit at least $1,000 every 34 days to qualify.

How X Money Works

Theriault walked through the process of opening an X Money account, which requires a premium subscription and a one-time deposit of $100. He found that the account’s user interface was relatively straightforward, but noted that the lack of a recurring deposit option was a significant drawback. As he explained, ‘an account that I have to remember is an account that eventually gets forgotten.’

X Money’s terms and conditions reveal some important details about how the account works. For example, the 6% yield is variable and may change over time. Additionally, the account’s 3% cash back reward has some exclusions, such as property taxes, rent payments, and brokerage deposits.

Pros and Cons

So is X Money worth considering? Theriault weighed the pros and cons, noting that the account’s high yield and cash back rewards make it an attractive option for those who can meet the direct deposit requirements. However, the lack of recurring deposit options and the potential for the yield to change over time are significant drawbacks.

As Theriault noted, ‘I judge a bank account on its rate, its terms, and its insurance. Same religion for all eight of mine.’ In this case, X Money’s terms and conditions are relatively standard, with FDIC insurance provided through Cross River Bank in New Jersey.

Conclusion

In the end, Theriault decided to open an X Money account, but noted that it would be ‘on a work visa, so to speak’ until the account adds a recurring deposit option. As he explained, ‘I’m in, but I have to do it a little bit differently.’ Whether or not X Money is right for you will depend on your individual financial needs and goals.

The full episode of Epic Real Estate is available on OBBM Network TV.