The “3-6-3 Rule” is a slang term that humorously describes a simplified approach to banking operations, particularly during a certain era. While it’s not a formal or regulatory rule, the term is used to capture a traditional and somewhat stereotypical view of how banks operated in the past. Here’s a breakdown of the 3-6-3 Rule:

1. **Pay 3% Interest:**
– Banks were often associated with paying a 3% interest rate on deposits. This aspect of the rule suggests that banks would attract deposits by offering a 3% interest rate to depositors.

2. **Loan at 6% Interest:**
– The second part of the rule implies that banks would lend money to borrowers at a 6% interest rate. This created a spread of 3 percentage points between the interest paid on deposits and the interest charged on loans.

3. **Hit the Golf Course by 3 PM:**
– The final part of the rule humorously suggests that, with the banking activities of paying 3% interest on deposits and lending at 6%, bankers could complete their work early and enjoy leisure activities, such as hitting the golf course, by 3 PM.

This phrase is often used to illustrate a simpler time in banking when interest rates were more stable, banking operations were less complex, and there was a perceived ease in making a profit through traditional lending and deposit activities.

While the 3-6-3 Rule is a humorous and somewhat nostalgic way of characterizing the banking industry, it is important to note that banking operations and practices have evolved significantly over time. In today’s dynamic financial environment, banks engage in a wide range of activities beyond traditional lending and deposit-taking, including investment banking, asset management, and various financial services. Additionally, interest rates are influenced by a variety of factors and can fluctuate based on economic conditions and monetary policy. The simplicity implied by the 3-6-3 Rule no longer captures the full scope of modern banking operations.