X ends interest payments on money accounts: What New York users need to know

In a latest update, X is reportedly ending its interest-earning feature for users in New York, shifting consumer preferences in the state as residents look for other platforms to earn returns on their X money balances.

The New York Department of Financial Services told X Payments LLC it cannot pay interest or stored value accounts this time, so X is dropping the annual equivalent rate to 0.00% for state residents. According to reports, X is working with regulators for affixes and still offers a $300 cash incentive for qualifying New York customers who keep accounts open.

On social platform X, users have been responding to the current announcement, with one writing, “Seems the NY bankers don't want people pulling money out of their NY banks. Protectionism.”

Second added, “The most visible earlier opposition came from two New York lawmakers—State Senator Brad Hoylman-Sigal and Assemblymember Micah Lasher—who sent a May 2025 letter urging DFS to deny X a license altogether. A law firm had also previously argued X was “unfit.” Those efforts targeted licensing, not the specific interest rule announced this week. X says it is still working with the department to resolve the yield restriction.”