, OTE2601 Assignment 3 (COMPLETE ANSWERS)
Semester 1 2025 - DUE 8 July 2025; 100% correct
solutions and explanations.
QUESTION 1
Comparison of Stokvel Accounts Offered by Banks (25
Marks)
Introduction
Stokvels are traditional savings schemes in South Africa where
members of a group contribute fixed amounts of money to a
central fund regularly, and members take turns to receive lump
sums. They play a significant role in promoting financial
inclusion, social cohesion, and collective economic
empowerment, especially in underbanked communities. Over
time, the popularity of stokvels has prompted major banks in
South Africa to develop formal stokvel banking products that
offer security, transparency, and accessibility. This essay
compares stokvel accounts offered by FNB and Standard Bank
with those offered by ABSA and Nedbank, and also elaborates
on the different types and roles of stokvels in South Africa.
Types and Roles of Stokvels
Stokvels are not uniform; they take on various forms based on
the needs of the members. The major types include:
1. Savings Stokvels: Members save a fixed amount monthly,
and the pooled money is shared out at a specific time, often
in December. These promote disciplined saving and are
Semester 1 2025 - DUE 8 July 2025; 100% correct
solutions and explanations.
QUESTION 1
Comparison of Stokvel Accounts Offered by Banks (25
Marks)
Introduction
Stokvels are traditional savings schemes in South Africa where
members of a group contribute fixed amounts of money to a
central fund regularly, and members take turns to receive lump
sums. They play a significant role in promoting financial
inclusion, social cohesion, and collective economic
empowerment, especially in underbanked communities. Over
time, the popularity of stokvels has prompted major banks in
South Africa to develop formal stokvel banking products that
offer security, transparency, and accessibility. This essay
compares stokvel accounts offered by FNB and Standard Bank
with those offered by ABSA and Nedbank, and also elaborates
on the different types and roles of stokvels in South Africa.
Types and Roles of Stokvels
Stokvels are not uniform; they take on various forms based on
the needs of the members. The major types include:
1. Savings Stokvels: Members save a fixed amount monthly,
and the pooled money is shared out at a specific time, often
in December. These promote disciplined saving and are
