OTE2601 Assignment 3 2025
Unique Number:
Due date: 8 July 2025
QUESTION 1
Comparison of Stokvel Account: FNB vs Nedbank
FNB Stokvel Account
FNB offers a stokvel account with no monthly fee and immediate access to funds. It sends
free notifications to all signatories and calculates interest based on the total amount saved.
FNB provides some of the most competitive interest rates, ranging from 0.25% (for R1–
R999) to 4.65% (for R100,000 and above). The account requires ID copies, proof of
residence, and a written stokvel constitution.
Advantages:
High interest rates for larger amounts.
Real-time notifications for transparency.
Encourages formalisation through documentation.
Nedbank Stokvel Account
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
Introduction
Stokvels are one of South Africa’s most trusted informal saving systems, offering
group-based financial support for a variety of goals. While traditionally managed
without formal institutions, many banks now offer stokvel accounts with added
benefits such as security, interest earnings, and digital management tools. These
accounts address the risks associated with informal stokvels, such as
mismanagement and theft. This answer compares the stokvel account options from
FNB and Nedbank, and also explains the roles of different stokvel types in South
African communities.
Comparison of Stokvel Account: FNB vs Nedbank
FNB Stokvel Account
FNB offers a stokvel account with no monthly fee and immediate access to funds. It
sends free notifications to all signatories and calculates interest based on the total
amount saved. FNB provides some of the most competitive interest rates, ranging
from 0.25% (for R1–R999) to 4.65% (for R100,000 and above). The account requires
ID copies, proof of residence, and a written stokvel constitution.
Advantages:
High interest rates for larger amounts.
Real-time notifications for transparency.
Encourages formalisation through documentation.
Nedbank Stokvel Account
Nedbank’s stokvel account is more community-focused. It offers no account
maintenance fees, 10% discounts on groceries or school supplies at selected stores,
and optional burial cover of R10,000 per member (at R20 per month). Members can
manage the account via USSD or the Nedbank Money App, making it more
accessible to lower-income or tech-limited groups. Interest rates are not advertised
but are available at branches.
Unique Number:
Due date: 8 July 2025
QUESTION 1
Comparison of Stokvel Account: FNB vs Nedbank
FNB Stokvel Account
FNB offers a stokvel account with no monthly fee and immediate access to funds. It sends
free notifications to all signatories and calculates interest based on the total amount saved.
FNB provides some of the most competitive interest rates, ranging from 0.25% (for R1–
R999) to 4.65% (for R100,000 and above). The account requires ID copies, proof of
residence, and a written stokvel constitution.
Advantages:
High interest rates for larger amounts.
Real-time notifications for transparency.
Encourages formalisation through documentation.
Nedbank Stokvel Account
DISCLAIMER & TERMS OF USE
Educational Aid: These study notes are intended to be used as educational resources and should not be seen as a
replacement for individual research, critical analysis, or professional consultation. Students are encouraged to perform
their own research and seek advice from their instructors or academic advisors for specific assignment guidelines.
Personal Responsibility: While every effort has been made to ensure the accuracy and reliability of the information in
these study notes, the seller does not guarantee the completeness or correctness of all content. The buyer is
responsible for verifying the accuracy of the information and exercising their own judgment when applying it to their
assignments.
Academic Integrity: It is essential for students to maintain academic integrity and follow their institution's policies
regarding plagiarism, citation, and referencing. These study notes should be used as learning tools and sources of
inspiration. Any direct reproduction of the content without proper citation and acknowledgment may be considered
academic misconduct.
Limited Liability: The seller shall not be liable for any direct or indirect damages, losses, or consequences arising from
the use of these notes. This includes, but is not limited to, poor academic performance, penalties, or any other negative
consequences resulting from the application or misuse of the information provided.
, For additional support +27 81 278 3372
QUESTION 1
Introduction
Stokvels are one of South Africa’s most trusted informal saving systems, offering
group-based financial support for a variety of goals. While traditionally managed
without formal institutions, many banks now offer stokvel accounts with added
benefits such as security, interest earnings, and digital management tools. These
accounts address the risks associated with informal stokvels, such as
mismanagement and theft. This answer compares the stokvel account options from
FNB and Nedbank, and also explains the roles of different stokvel types in South
African communities.
Comparison of Stokvel Account: FNB vs Nedbank
FNB Stokvel Account
FNB offers a stokvel account with no monthly fee and immediate access to funds. It
sends free notifications to all signatories and calculates interest based on the total
amount saved. FNB provides some of the most competitive interest rates, ranging
from 0.25% (for R1–R999) to 4.65% (for R100,000 and above). The account requires
ID copies, proof of residence, and a written stokvel constitution.
Advantages:
High interest rates for larger amounts.
Real-time notifications for transparency.
Encourages formalisation through documentation.
Nedbank Stokvel Account
Nedbank’s stokvel account is more community-focused. It offers no account
maintenance fees, 10% discounts on groceries or school supplies at selected stores,
and optional burial cover of R10,000 per member (at R20 per month). Members can
manage the account via USSD or the Nedbank Money App, making it more
accessible to lower-income or tech-limited groups. Interest rates are not advertised
but are available at branches.
