,OTE2601 Assignment 3 (COMPLETE ANSWERS)
2025 - DUE 8 July 2025; 100% TRUSTED Complete,
trusted solutions and explanations.
MULTIPLE CHOICE,ASSURED EXCELLENCE
QUESTION 1: Comparing Bank-Backed Stokvel Accounts and
Types of Stokvels
1.1 Definition and Importance of Stokvels
Stokvels are informal savings and investment groups
common in South Africa, where members contribute fixed
amounts regularly and share the pooled funds or distribute
lump sums on a rotating basis.
They foster financial discipline, social solidarity, and access
to lump sums for expenses or investments.
1.2 Types of Stokvels and Their Roles
Burial Societies: Provide lump sums to cover funeral costs
of members or their families, offering social risk-pooling
and dignity in death.
Savings Clubs: Members save regularly for annual or
biannual payouts, often timed for holidays or school fees;
build saving habits and provide bulk funds.
Investment Clubs: Pool funds to invest in bulk purchases
(e.g., groceries, building materials) or formal markets for
collective returns.
, Loan Clubs (Lending Stokvels): Members take short-term
loans from the pool at low or no interest, supporting small
emergencies or business needs.
Purchase-Power Clubs: Buy assets (e.g., appliances,
vehicles) as a group, negotiating discounts and sharing
usage or resale.
1.3 Bank-Backed Stokvel Accounts: FNB vs ABSA (or Standard
Bank vs Nedbank)
Standard
ABSA Nedbank
FNB Stokvel Bank
Feature Stokvel Stokvel
Account Stokvel
Account Savings
Option
Minimum Flexible, From R50
From R50 From R100
Monthly from R100 per
per member per member
Contribution per member member
Variable,
market- Tiered rates, Variable,
Competitive
Interest Rate related; competitive linked to
tiered rates
tiered for but lower prime
balances
Access to Monthly Fixed dates; Fixed payout Payout on
Funds withdrawals early access dates; agreed
after 6- with fee emergency dates;
, Standard
ABSA Nedbank
FNB Stokvel Bank
Feature Stokvel Stokvel
Account Stokvel
Account Savings
Option
month limited
loans
grouping redraws
Online Internet & E-
Mobile &
Record- portal, SMS, mobile statements,
internet
Keeping app banking, group
banking
notifications statements statements
Deposit
Deposit
Guarantee Deposit Deposit
Guarantee
Security & Scheme; Guarantee; Guarantee
Scheme;
Insurance optional optional life Scheme;
funeral
funeral cover life cover
funeral plan
cover
Short-term
Credit-rated Group loans, Financial
loans to
Value-Added loans, insurance, coaching,
members,
Services insurance financial group
funeral
bundles education loans
cover
1.4 Comparative Analysis
2025 - DUE 8 July 2025; 100% TRUSTED Complete,
trusted solutions and explanations.
MULTIPLE CHOICE,ASSURED EXCELLENCE
QUESTION 1: Comparing Bank-Backed Stokvel Accounts and
Types of Stokvels
1.1 Definition and Importance of Stokvels
Stokvels are informal savings and investment groups
common in South Africa, where members contribute fixed
amounts regularly and share the pooled funds or distribute
lump sums on a rotating basis.
They foster financial discipline, social solidarity, and access
to lump sums for expenses or investments.
1.2 Types of Stokvels and Their Roles
Burial Societies: Provide lump sums to cover funeral costs
of members or their families, offering social risk-pooling
and dignity in death.
Savings Clubs: Members save regularly for annual or
biannual payouts, often timed for holidays or school fees;
build saving habits and provide bulk funds.
Investment Clubs: Pool funds to invest in bulk purchases
(e.g., groceries, building materials) or formal markets for
collective returns.
, Loan Clubs (Lending Stokvels): Members take short-term
loans from the pool at low or no interest, supporting small
emergencies or business needs.
Purchase-Power Clubs: Buy assets (e.g., appliances,
vehicles) as a group, negotiating discounts and sharing
usage or resale.
1.3 Bank-Backed Stokvel Accounts: FNB vs ABSA (or Standard
Bank vs Nedbank)
Standard
ABSA Nedbank
FNB Stokvel Bank
Feature Stokvel Stokvel
Account Stokvel
Account Savings
Option
Minimum Flexible, From R50
From R50 From R100
Monthly from R100 per
per member per member
Contribution per member member
Variable,
market- Tiered rates, Variable,
Competitive
Interest Rate related; competitive linked to
tiered rates
tiered for but lower prime
balances
Access to Monthly Fixed dates; Fixed payout Payout on
Funds withdrawals early access dates; agreed
after 6- with fee emergency dates;
, Standard
ABSA Nedbank
FNB Stokvel Bank
Feature Stokvel Stokvel
Account Stokvel
Account Savings
Option
month limited
loans
grouping redraws
Online Internet & E-
Mobile &
Record- portal, SMS, mobile statements,
internet
Keeping app banking, group
banking
notifications statements statements
Deposit
Deposit
Guarantee Deposit Deposit
Guarantee
Security & Scheme; Guarantee; Guarantee
Scheme;
Insurance optional optional life Scheme;
funeral
funeral cover life cover
funeral plan
cover
Short-term
Credit-rated Group loans, Financial
loans to
Value-Added loans, insurance, coaching,
members,
Services insurance financial group
funeral
bundles education loans
cover
1.4 Comparative Analysis
