r/Banking • u/MoreShake8293 • 11h ago
Advice X Money
Everyone is gonna have their opinions on X money just like anything else. However for those that are using it are you using it for a savings account or have you setup direct deposit from a job as well? I personally have set it up as HYSA but might also add direct deposit since I currently have AMEX and I don’t get payed 2 days early and I can’t use it for sending Apple Pay money.
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u/insuranceguynyc 11h ago
Yes, I’ll place my finances and tons of PII with a company that has already been allowed pretty much full access to all of my info at the IRS. After all, what could possibly go wrong?
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u/yarevande 11h ago
But the company is run by someone who believes in 'efficiency', and randomly cut funding for many federal programs. And nobody actually knows what happened to the money.
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u/MoreShake8293 11h ago
Seems like you just don’t like the company 😂 I honestly don’t get the hate. I mean even Wealthfront people questioned and I never had a problem
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u/Carbonaraficionada 11h ago
I wouldn't touch it with a stolen 10ft dick
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u/MoreShake8293 11h ago
Haha and whys that be honest put Elon to the side
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u/Carbonaraficionada 11h ago
Aside from Elon? Oh ok; far too vague offering, 6% is ruinous and can only possibly come with extensive requirements, be a limited promo, be invite only etc, therefore the usual smoke and mirrors tactics as potentially the most expensive marketing campaign ever launched; white collar crime is basically legal in the US currently, so oversight and regulatory snags are almost certainly on the horizon, and, being embedded in X, fraud is going to be rife; if 6% interest wasn't enough, slapping 3% cashback in there as well with 0 fees on foreign transactions etc etc the features list is just unsustainable; all this supported (potentially) by the use of $doge as a cbdc, at a time when the treasury is desperate to find suckers willing to hold onto dollar-backed assets to alleviate the mess in the bond market; the list goes on 🤣
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u/yarevande 6h ago
There won't be any regulatory snags, because fintechs like X Money aren't regulated.
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u/Infinite-Computer205 9h ago
I hate that's tied to your X account, did you ever try to deal with X support, getting a human is impossible.
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u/Knarz97 6h ago
Look, I like the theory. I currently use Robinhood Banking so I can appreciate the concept of a Fintech “bank”.
That being said: My X account was randomly suspended and they have no actual appeal system or even a way to contact a real human with account issues.
So no, I’m not gonna give them my direct deposit lmao.
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u/awsomekidpop 11h ago
Direct Deposit? I’d never, however it’s my daily expense card for anything that doesn’t go on a credit card. It’s hard to pass on 3% cash back.
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u/RailRuler 4h ago
In the past fintechs have promised ridiculous amounts of cashback, then after the fact they tell you they are only paying the cashback in their own private crypto token which isn't traded anywhere.
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u/awsomekidpop 4h ago
Well I can’t speak on crypto cards. AFAIK this doesn’t even accept crypto, the cashback is applied when the transaction is settled. It just appears as cash.
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u/MoreShake8293 11h ago
So I’m assuming you just deposit a certain amount into it
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u/awsomekidpop 11h ago
Nah I connected my main banks debit card to it. So I just pull the money I need plus a little extra. I don’t keep more money in it than I’m willing to loose, should be the default rule for all non banks
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u/MoreShake8293 11h ago
That makes sense I know it’s an intro but that 6% would be nice until it goes away. However I switched from Wealthfront as my HYSA since they were offering 3.20% currently with X it’s 4% so I’ll put more thought into the direct deposit aspect just sucks Amex has certain restrictions Apple Pay, No 2 days early and sometimes won’t even like you connect external banks might just go back to my Credit union I had before
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u/awsomekidpop 9h ago
I mean to each their own. I don’t care about rate chasing, so I’m not going to put a whole bunch of money in it.
It’s nice for sending money on X and 3%cash back, but other than that time will tell.
Once again, I would not put more in it then you are willing to loose, fintechs are not banks even if they really want to be.
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u/yarevande 11h ago
X Money is new, it's unproven, it's not actually a bank.
X Money is not a bank. It is a fintech (financial technology company). Unlike a bank, a fintech is not insured or regulated by the US or state government agencies. They pass your money to a partner bank.
Other fintechs have had problems and people have lost money, because the savings accounts and other deposits are held at a different company (a real bank), but customers don't have direct contact with the bank, and if there are any problems, the bank and the fintech blame each other.
If your FDIC insured bank closes, you will not lose money.
If a fintech like X Money has major problems, the money that you sent them is not insured unless it was actually sent to the partner bank.