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OTE2601 Assignment 3
(COMPLETE ANSWERS)
2025 - DUE 8 July 2025
NO PLAGIARISM
[Year]
, Exam (elaborations)
OTE2601 Assignment 3 (COMPLETE
ANSWERS) 2025 - DUE 8 July 2025Course
Orientation to teaching Economic (OTE2601)
Institution
University Of South Africa (Unisa)
Book
Principles and Pluralist Approaches in Teaching Economics
OTE2601 Assignment 3 (DETAILED ANSWERS) 2025 - DISTINCTION
GUARANTEED - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED
Answers, guidelines, workings and references ,.
QUESTION 1 Stokvels are popular and even banks offer stokvel options.
Opening a stokvel account with a bank provides members with the security
they do not get with informal stokvels. Compare the stokvel account from
FNB or Standard Bank with the stokvel account of ABSA or Nedbank. In your
answer, elaborate on the types and roles of various stokvels. (25)
QUESTION 1 [25 MARKS]
Stokvels are popular and even banks offer stokvel options. Opening a stokvel account with
a bank provides members with the security they do not get with informal stokvels.
Compare the stokvel account from FNB or Standard Bank with the stokvel account of
ABSA or Nedbank. In your answer, elaborate on the types and roles of various stokvels.
Introduction (3 marks)
Stokvels are a form of rotating savings and credit association commonly found in South Africa.
They involve a group of people who contribute fixed amounts of money into a savings pool,
which is then distributed among members based on a set schedule or used for a common goal.
Banks have formalised stokvel accounts to increase financial security, transparency, and
convenience. This question compares stokvel products from different banks and elaborates on
the types and roles of stokvels in South African society.
Comparison of Stokvel Accounts (10 marks)
,1. FNB Stokvel Account
Minimum members: 3 members
Minimum deposit: R100 per month
Interest: Earn interest based on balance
Benefits:
o Free online banking
o Monthly statements
o SMS notifications for transparency
o Members can access the account with joint permissions
o Safe and secure – avoids the risks of theft and mismanagement
2. ABSA Stokvel Account
Minimum members: 3 or more
Minimum deposit: R50
Interest: Tiered interest rates based on balance
Benefits:
o No monthly account fee
o Interest paid annually
o Funeral benefit included (optional)
o Group access to account
o Option to apply for group loans in future
Comparison Summary
Both FNB and ABSA offer secure, interest-earning stokvel accounts with group access
features.
ABSA offers more flexibility in minimum deposits and additional benefits such as
funeral cover, while FNB emphasises digital convenience and free transactional tools.
ABSA targets lower-income stokvel groups with no monthly fee, while FNB is more
suitable for tech-savvy groups needing instant digital tracking.
Types of Stokvels (6 marks)
1. Savings Stokvel:
Members contribute monthly and take turns receiving a lump sum. Commonly used for
large purchases or emergencies.
2. Grocery Stokvel:
Members pool money throughout the year to buy groceries in bulk, usually in December.
3. Burial/Funeral Stokvel:
Helps cover funeral expenses. Members contribute monthly and receive financial support
when a family member passes away.
, 4. Investment Stokvel:
Aims to grow members’ money through investments in property, shares, or businesses.
5. Loan/Insurance Stokvel:
Members can borrow money from the pool with interest, providing a low-risk credit
option for members.
6. Party Stokvel:
Funds are saved for hosting celebrations or events like weddings or birthdays.
Roles of Stokvels (6 marks)
1. Financial Inclusion
Stokvels provide savings and credit services to people excluded from traditional banking,
particularly in rural or low-income communities.
2. Community Support
They foster unity and mutual support among members. In cases of emergency (e.g.
funerals), members receive both financial and emotional help.
3. Wealth Building
Investment stokvels encourage members to pool resources to acquire income-generating
assets like property or vehicles.
4. Financial Discipline
Members develop saving habits and budgeting skills through regular contributions.
5. Job Creation
Some stokvels invest in small businesses, contributing to local economic development
and employment.
6. Cultural Significance
Stokvels are rooted in Ubuntu – the African value of mutual care and social solidarity.
Conclusion (2 marks)
Stokvels, whether formalised through banks or operated informally, play a critical role in
promoting savings, financial literacy, and economic development in South Africa. Bank-offered
stokvel accounts like those from FNB and ABSA enhance the safety and transparency of stokvel
operations, while various types of stokvels cater to specific financial and social needs in the
community.
OTE2601 Assignment 3
(COMPLETE ANSWERS)
2025 - DUE 8 July 2025
NO PLAGIARISM
[Year]
, Exam (elaborations)
OTE2601 Assignment 3 (COMPLETE
ANSWERS) 2025 - DUE 8 July 2025Course
Orientation to teaching Economic (OTE2601)
Institution
University Of South Africa (Unisa)
Book
Principles and Pluralist Approaches in Teaching Economics
OTE2601 Assignment 3 (DETAILED ANSWERS) 2025 - DISTINCTION
GUARANTEED - DISTINCTION GUARANTEED - DISTINCTION GUARANTEED
Answers, guidelines, workings and references ,.
QUESTION 1 Stokvels are popular and even banks offer stokvel options.
Opening a stokvel account with a bank provides members with the security
they do not get with informal stokvels. Compare the stokvel account from
FNB or Standard Bank with the stokvel account of ABSA or Nedbank. In your
answer, elaborate on the types and roles of various stokvels. (25)
QUESTION 1 [25 MARKS]
Stokvels are popular and even banks offer stokvel options. Opening a stokvel account with
a bank provides members with the security they do not get with informal stokvels.
Compare the stokvel account from FNB or Standard Bank with the stokvel account of
ABSA or Nedbank. In your answer, elaborate on the types and roles of various stokvels.
Introduction (3 marks)
Stokvels are a form of rotating savings and credit association commonly found in South Africa.
They involve a group of people who contribute fixed amounts of money into a savings pool,
which is then distributed among members based on a set schedule or used for a common goal.
Banks have formalised stokvel accounts to increase financial security, transparency, and
convenience. This question compares stokvel products from different banks and elaborates on
the types and roles of stokvels in South African society.
Comparison of Stokvel Accounts (10 marks)
,1. FNB Stokvel Account
Minimum members: 3 members
Minimum deposit: R100 per month
Interest: Earn interest based on balance
Benefits:
o Free online banking
o Monthly statements
o SMS notifications for transparency
o Members can access the account with joint permissions
o Safe and secure – avoids the risks of theft and mismanagement
2. ABSA Stokvel Account
Minimum members: 3 or more
Minimum deposit: R50
Interest: Tiered interest rates based on balance
Benefits:
o No monthly account fee
o Interest paid annually
o Funeral benefit included (optional)
o Group access to account
o Option to apply for group loans in future
Comparison Summary
Both FNB and ABSA offer secure, interest-earning stokvel accounts with group access
features.
ABSA offers more flexibility in minimum deposits and additional benefits such as
funeral cover, while FNB emphasises digital convenience and free transactional tools.
ABSA targets lower-income stokvel groups with no monthly fee, while FNB is more
suitable for tech-savvy groups needing instant digital tracking.
Types of Stokvels (6 marks)
1. Savings Stokvel:
Members contribute monthly and take turns receiving a lump sum. Commonly used for
large purchases or emergencies.
2. Grocery Stokvel:
Members pool money throughout the year to buy groceries in bulk, usually in December.
3. Burial/Funeral Stokvel:
Helps cover funeral expenses. Members contribute monthly and receive financial support
when a family member passes away.
, 4. Investment Stokvel:
Aims to grow members’ money through investments in property, shares, or businesses.
5. Loan/Insurance Stokvel:
Members can borrow money from the pool with interest, providing a low-risk credit
option for members.
6. Party Stokvel:
Funds are saved for hosting celebrations or events like weddings or birthdays.
Roles of Stokvels (6 marks)
1. Financial Inclusion
Stokvels provide savings and credit services to people excluded from traditional banking,
particularly in rural or low-income communities.
2. Community Support
They foster unity and mutual support among members. In cases of emergency (e.g.
funerals), members receive both financial and emotional help.
3. Wealth Building
Investment stokvels encourage members to pool resources to acquire income-generating
assets like property or vehicles.
4. Financial Discipline
Members develop saving habits and budgeting skills through regular contributions.
5. Job Creation
Some stokvels invest in small businesses, contributing to local economic development
and employment.
6. Cultural Significance
Stokvels are rooted in Ubuntu – the African value of mutual care and social solidarity.
Conclusion (2 marks)
Stokvels, whether formalised through banks or operated informally, play a critical role in
promoting savings, financial literacy, and economic development in South Africa. Bank-offered
stokvel accounts like those from FNB and ABSA enhance the safety and transparency of stokvel
operations, while various types of stokvels cater to specific financial and social needs in the
community.
