Estacado Federal Credit Union History
Credit unions are different from banks in several key areas:
- Credit unions are not-for-profit which means all income is returned to members in higher dividends, lower loan rates, expanded products and services for low or no cost, and used for capital reserves.
- Credit unions are member-owned and not owned by large and often out of state stockholders. Each primary member receives just one vote no matter the amount of their deposits.
- Credit unions are tax-exempt which allows them to typically have better rates.
- Credit unions are cooperatives and work together across the country to encourage responsible savings and borrowing.
- Credit unions serve specific employer groups or communities. Loans are only given to qualified members.
- Credit unions cannot be sold. Members must vote to combine credit unions.
- Credit union boards are unpaid volunteer members elected by the membership.