OTE2601
Assignment 3 2025
Unique #:
Due Date: 8 July 2025
Detailed solutions, explanations, workings
and references.
+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.
Varsity Cube 2025 +27 81 278 3372
Assignment 3 2025
Unique #:
Due Date: 8 July 2025
Detailed solutions, explanations, workings
and references.
+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.
Varsity Cube 2025 +27 81 278 3372
