Chapter 17: Lu Chuan Is So Wicked

“Deposits, investments, and loans?” Miss Mi expressed her confusion. “Explain it to me.”

Lu Chuan said, “Deposits are simple. People bring their copper coins to the bank and store them there. Depending on how long they store their money, I calculate interest for them. When the deposit matures, I return both the principal and the interest to them.”

Miss Mi shook her head. “I don’t think anyone would foolishly put their money with you just to get a commercial note in return.”

“No, you’re mistaken. Look at the line of people in front of my counters; that alone shows my bank’s business is doing quite well.”

Miss Mi glanced at the crowd waiting to make deposits and wore a puzzled expression.

“Why don’t they just keep their money in their own hands? Why must they deposit it in your bank? Aren’t they afraid you might run off with it?”

Lu Chuan chuckled. “It’s simple. The county government of Lu guarantees it, so they don’t worry about the Lu Family Bank running away. Plus, I pay interest. For every hundred coins deposited for one year, they get five coins in interest. For two years, it’s seven coins per hundred each year, and for three years or more, nine coins in interest!”

“Master Yun, do the math yourself. With interest this high, why wouldn’t they deposit their copper coins here?”

Miss Mi scoffed lightly. “It’s only nine coins in interest. Is it really worth risking so much?”

“Only nine coins? Is that so little?” Lu Chuan countered. “Then, Master Yun, calculate this: your Mi family’s trading caravan sets out on a trip. If the transaction volume is one million coins, how much profit do you make?”

Miss Mi straightened her posture proudly. “The Mi family has an impeccable reputation. No matter where our caravan goes, people are willing to do business with us. If we manage to complete one million coins in transactions, our profit is at least two hundred thousand coins!”

“How long does a caravan trip take? What if accidents happen along the way? How much loss would there be? After deducting all expenses, how much profit remains on average from a one-million-coin transaction volume?”

“This…” Miss Mi’s expression shifted slightly. She had only described normal conditions, but in this era, traveling with a caravan was life-threatening.

If the Mi caravans conducted business in the Central Plains, safety was higher but profits were lower.

Only by trading with northern tribes or venturing south to purchase goods could they earn higher profits.

But that was far more dangerous.

Every year, many Mi caravans encountered danger, some even wiped out entirely.

So, after comprehensive calculation, when a Mi caravan completes one million coins in transactions, the average profit is about one hundred thousand coins.

Yet, at Lu Family Bank, a three-year fixed deposit can earn nine coins in interest!

That equals ninety thousand coins in interest per year for one million coins!

The interest nearly matches the profit from the Mi family’s trading expeditions!

As long as Lu Family Bank doesn’t run away, this nine-coin interest will continue indefinitely!

Although the term is long and requires a three-year commitment, for ordinary people, it’s a very good investment channel.

This time, Miss Mi finally understood why there were so many people queued at the deposit counters.

In an era when travel was difficult, not everyone could do business.

For farmers, who lived by tilling the land, saving much money throughout the year was impossible.

Keeping money in hand risked loss and could never make money.

But by depositing at Lu Family Bank, they need not worry, and when the term ends, they get back even more!

Is there anything more enticing than this?

Yet one question still puzzled her.

“Lord Lu, your Lu Family Bank pays so much interest. Isn’t this a loss for you?”

“Loss?” Lu Chuan waved his hand. “Impossible! How could a bank ever lose money?”

Miss Mi couldn’t understand. “How could it not be a loss? You pay so much interest.”

“You only see the interest, not the principal,” Lu Chuan said. “So many people deposit money, and they can’t withdraw it before maturity. Doesn’t that mean I can use this money for other purposes in the meantime?

“The simplest way is to use this money to do business. As long as the returns exceed the interest I pay, how could I possibly lose money?”

“You can do that?” Miss Mi’s eyes widened, as if discovering a new world.

Lu Chuan was absolutely right. She had only noticed the interest but overlooked the huge principal!

With such a vast principal in hand, the possibilities were endless!

As long as Lu Family Bank could operate steadily, not only could the fixed deposits be used for business, but even the money from exchanging commercial notes could be temporarily used for business.

If managed swiftly, the bank could generate continuous profits from this enormous principal!

Only at this moment did Miss Mi realize just how formidable Lu Family Bank’s power truly was!

“Lord Lu, how did you come up with all this?”

Miss Mi’s gaze toward Lu Chuan shifted again.

Before, she was surprised and felt that Lu Chuan was different—far superior even to her elder brother, Mi Zhu.

But now, she was genuinely shaken.

This method of gathering vast wealth through interest, then using that wealth to conduct business and earn higher returns—it was brilliant!

If her brother Mi Zhu had this mindset, the Mi family wouldn’t take long to surpass the Zhen family and become the undisputed greatest merchant family in the land!

At this moment, Miss Mi’s eyes held admiration.

She was growing more and more interested in the man before her.

Lu Chuan noticed Miss Mi’s gaze and felt a secret thrill, though his expression remained neutral.

“Is this difficult? Anyone with a bit of business sense could think of it. Doesn’t your Mi family operate this way?”

Miss Mi stared at Lu Chuan wide-eyed: are you serious?

Lu Chuan, feeling a bit embarrassed under her gaze, quickly changed the subject.

“I haven’t finished explaining. These counters here handle deposits. Over there are the real highlights—investment and loans! Come, I’ll show you!”

Lu Chuan reached out, attempting to grab Miss Mi’s arm, but she was prepared and pulled her arm back, leaving his hand grasping at air.

Well, the same trick clearly couldn’t be used twice.

Miss Mi frowned inwardly.

She had already noticed something odd about Lu Chuan’s behavior.

In this era, men often held hands to express camaraderie and might even sleep side by side, but Lu Chuan’s temperament and personality clearly weren’t so affectionate.

So why did he repeatedly try to grab her arm?

Could it be...

Miss Mi adjusted her hair with a finger and glanced discreetly at Lu Chuan.

Could he have discovered that she was disguised as a man?

If that were true, Lu Chuan would be... quite wicked!