11/9/2022 | Business Insider
Elon Musk says Twitter could launch an 'extremely high-yield' account to keep users' cash on the platform
On a live-streamed Twitter Spaces call, Elon Musk announced that he may add a high-yield savings feature to Twitter.
Twitter creators could be allowed to charge as little as $1 to access paywalled content.
Money earned from paywalled content would sit in the creator's account, which would function like a high-yield savings account.
On a live-streamed meeting hosted on Twitter Spaces on Wednesday November 9, Elon Musk said Twitter might start offering a high-yield savings account for money earned through paywalled content.
Twitter is reportedly working on a "Paywalled Video" feature that would allow creators to charge users to access their content and would allow the company to compete with video platforms like Instagram Reels, TikTok, and YouTube Shorts. With this feature, creators could charge as little as $1 for users to access their paywalled content, and creators would have cash balances in their Twitter accounts.
A high-yield savings account helps you earn passive income
A high-yield savings account is a type of savings account that pays much higher interest rates than a regular savings account. Traditional savings accounts typically offer interest rates under 1%, while high-yield savings accounts can earn you more than 3% in interest.
For example, if you had $10,000 in a high-yield savings account with 3% interest, compounding daily for five years, you'd earn about $1,618 in interest without lifting a finger. Interest rates may change depending on the economy, but overall, it's still better to keep your money in a high-yield savings account if you want it to grow.
Financial planners recommend keeping your emergency savings fund in high-yield savings accounts because they're liquid and easy to access. Musk apparently plans on offering high-yield savings account to Twitter users who plan on keeping their cash there, once Twitter's content paywalls are established.
Offering a high-yield savings account could just be the start of many changes to Twitter
Musk's divisive decision to charge $7.99 a month for Twitter verification and erratic employee layoffs have been met with criticism from long-term Twitter users. Since Musk's takeover, 1.3 million users have left Twitter, according to a report by MIT Technology Review. The Tesla CEO's plans to add paywalled content, new payment systems, and a high-yield savings account could incite further backlash.
The addition of payments and high-yield savings to Twitter could just be the tip of the iceberg; one fintech executive thinks Musk could build a "super app" that goes beyond social media to encompass ride-hailing, food delivery, and much more.