Photo: Vlad Fonsark

What is the rule of 3 in finance?

The 3-6-3 rule describes how bankers would supposedly give 3% interest on their depositors' accounts, lend the depositors money at 6% interest, and then be playing golf by 3 p.m. In the 1950s, 1960s, and 1970s, a huge part of a bank's business was lending out money at a higher interest rate than what it was paying out ...

investopedia.com - 3-6-3 Rule Definition - Investopedia

Who is the most craziest serial killer?

Ted Bundy (1946-1989) ... Harold Shipman (1946-2004) ... Andrei Chikatilo (1936- 1994) ... Jeffrey Dahmer (1960- 1994) ... Albert Fish (1870-1936)...

Last updated Apr 21, 2020

What are the 4 money personalities?

It may be useful to understand the various money personalities when finding the right approach to investing, spending, saving, and the overall...

Last updated Jul 15, 2022

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

What Is the 3-6-3 Rule?

The 3-6-3 rule is a slang term that refers to an unofficial practice in the banking industry in the 1950s, 1960s, and 1970s that was the result of non-competitive and simplistic conditions in the industry. The 3-6-3 rule describes how bankers would supposedly give 3% interest on their depositors' accounts, lend the depositors money at 6% interest, and then be playing golf by 3 p.m. In the 1950s, 1960s, and 1970s, a huge part of a bank's business was lending out money at a higher interest rate than what it was paying out to its depositors (as a result of tighter regulations during this time period). Key Takeaways The 3-6-3 rule is a slang term that refers to an unofficial practice in the banking industry, specifically in the 1950s, 1960s, and 1970s, which was the result of non-competitive and simplistic conditions in the industry. The 3-6-3 rule describes how bankers would supposedly give 3% interest on their depositors' accounts, lend the depositors money at 6% interest, and then be playing golf by 3 p.m. After the Great Depression, the government implemented tighter banking regulations, which made it more difficult for banks to compete with each other and limited the scope of the services they could provide clients; as a whole, the banking industry became stagnant.

Understanding the 3-6-3 Rule

After the Great Depression, the government implemented tighter banking regulations. This was partially due to the problems–namely corruption and a lack of regulation–that the banking industry faced leading up the economic downturn that precipitated the Great Depression. One result of these regulations is that it controlled the rates at which banks could lend and borrow money. This made it difficult for banks to compete with each other and limited the scope of the services they could provide clients. As a whole, the banking industry became more stagnant. With the loosening of banking regulations and the widespread adoption of information technology in the decades after the 1970s, banks now operate in a much more competitive and complex manner. For example, banks may now provide a greater range of services, including retail and commercial banking services, investment management, and wealth management. For banks that provide retail banking services, individual customers often use local branches of much larger commercial banks. Retail banks will generally offer savings and checking accounts, mortgages, personal loans, debit/credit cards, and certificates of deposit (CDs) to their clients. In retail banking, the focus is on the individual consumer (as opposed to any larger-sized clients, such as an endowment). Banks that provide investment management for their clientele typically manage collective investments (such as pension funds) as well as overseeing the assets of individual customers. Banks that work with collective assets may also offer a wide range of traditional and alternative products that may not be available to the average retail investor, such as IPO opportunities and hedge funds. For banks that offer wealth management services, they may cater to both high net worth and ultra-high net worth individuals. Financial advisors at these banks typically work with clients to develop tailored financial solutions to meet their needs. Financial advisors may also provide specialized services, such as investment management, income tax preparation, and estate planning. Most financial advisors aim to attain the Chartered Financial Analyst (CFA) designation, which measures their competency and integrity in the field of investment management.

Where should I put my money instead of the bank?

Higher-Yield Money Market Accounts. Certificates of Deposit. Credit Unions and Online Banks. High-Yield Checking Accounts. Peer-to-Peer (P2P)...

Last updated Aug 18, 2018

How do you write a manifestation example?

For example: I am capable of succeeding at my goals. I am open to being the best version of myself. I open my mind and soul to creativity. I...

Last updated Jan 3, 2018

Promotion

What God says about getting rich?

“Command those who are rich in this present world not to be arrogant nor to put their hope in wealth, which is so uncertain, but to put their hope...

Last updated Mar 23, 2019

What not to do when retiring?

Plan for healthcare costs in retirement, pay off debt and delay Social Security until age 70 to help maximize your benefits. Quitting Your Job. ......

Last updated Nov 11, 2019

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

What is the king of essential oils?

Frankincense Frankincense is often called the King of Oils. This is likely because of its versatility and wide range of therapeutic benefits....

Last updated Nov 1, 2019

Awaken your dormant DNA ability to attract wealth effortlessly

The simple yet scientifically proven Wealth DNA method laid out in the report allows you to effortlessly start attracting the wealth and abundance you deserve.

Learn More »

Promotion

Which mantra should we chant daily?

1. OM. The king of mantras. The OM is the sound of the universe, resonating at 432 Hz, this is the entire world in just one intensely pleasurable...

Last updated Feb 21, 2019