,OTE2601 Assignment 3 (COMPLETE ANSWERS) Semester 1 2025 - DUE 8
July 2025;100% CORRECT AND TRUSTED SOLUTIONS
Question 1: Comparative Analysis of Bank-
Backed Stokvel Accounts and Types & Roles
of Stokvels
[25 Marks]
1. Introduction
Stokvels are a uniquely South African financial savings and social support system, deeply rooted
in African communal culture. These are informal saving schemes where members contribute a
fixed amount of money to a central fund on a regular basis and receive a lump sum payout in
rotation or when specific needs arise. Over the years, due to increased risks such as theft,
mismanagement, and disputes, formal financial institutions like FNB, Standard Bank, ABSA,
and Nedbank have introduced formalised stokvel accounts to improve security, transparency,
and accessibility.
This response will compare FNB’s and Standard Bank’s stokvel accounts with ABSA’s and
Nedbank’s alternatives and explore the types and roles of stokvels in the South African socio-
economic context.
2. Comparison of Stokvel Accounts Offered by Major Banks
2.1 First National Bank (FNB) Stokvel Account
Features:
A group savings account designed specifically for stokvels and saving clubs.
Minimum of 3 members required to open the account.
All members are required to be FNB customers.
Offers zero monthly fees.
Provides multiple signatory approval, enhancing security and control over withdrawals.
Interest-bearing account, depending on the balance and length of the savings period.
Allows electronic statements, ATM access, and cellphone banking.
Members can monitor activity through digital banking platforms.
, Benefits:
FNB offers funeral cover benefits and rewards for groups who maintain consistent
saving behaviour.
Group administration tools to help manage and communicate with members.
2.2 Standard Bank Stokvel Account
Features:
Known as the Society Scheme Account.
Requires three or more members.
Offers a fixed or variable interest rate depending on the amount and period of savings.
No monthly fees, provided the minimum balance is maintained.
Allows cheque and debit card access (subject to group rules).
Supports electronic and mobile banking access for transparency.
Option for group savings to be used for investments.
Benefits:
Optional access to Value-Added Services (VAS) like funeral plans, grocery vouchers,
and airtime.
Offers 24/7 access via mobile banking for tracking deposits and withdrawals.
Can include a savings calculator tool to forecast returns.
2.3 ABSA Stokvel Account
Features:
Known as the Club Account.
Tailored for group savings, suitable for burial societies, investment clubs, or grocery
stokvels.
Requires a minimum of three signatories.
No monthly management fee if minimum balance is maintained.
Provides tiered interest rates that increase with balance.
Supports electronic banking, statements, and SMS notifications.
Benefits:
Offers cash deposit options at ABSA ATMs and branches.
May include free death benefit cover for members depending on balance and activity.
Goal-based savings support through calculators and in-branch advisory services.
July 2025;100% CORRECT AND TRUSTED SOLUTIONS
Question 1: Comparative Analysis of Bank-
Backed Stokvel Accounts and Types & Roles
of Stokvels
[25 Marks]
1. Introduction
Stokvels are a uniquely South African financial savings and social support system, deeply rooted
in African communal culture. These are informal saving schemes where members contribute a
fixed amount of money to a central fund on a regular basis and receive a lump sum payout in
rotation or when specific needs arise. Over the years, due to increased risks such as theft,
mismanagement, and disputes, formal financial institutions like FNB, Standard Bank, ABSA,
and Nedbank have introduced formalised stokvel accounts to improve security, transparency,
and accessibility.
This response will compare FNB’s and Standard Bank’s stokvel accounts with ABSA’s and
Nedbank’s alternatives and explore the types and roles of stokvels in the South African socio-
economic context.
2. Comparison of Stokvel Accounts Offered by Major Banks
2.1 First National Bank (FNB) Stokvel Account
Features:
A group savings account designed specifically for stokvels and saving clubs.
Minimum of 3 members required to open the account.
All members are required to be FNB customers.
Offers zero monthly fees.
Provides multiple signatory approval, enhancing security and control over withdrawals.
Interest-bearing account, depending on the balance and length of the savings period.
Allows electronic statements, ATM access, and cellphone banking.
Members can monitor activity through digital banking platforms.
, Benefits:
FNB offers funeral cover benefits and rewards for groups who maintain consistent
saving behaviour.
Group administration tools to help manage and communicate with members.
2.2 Standard Bank Stokvel Account
Features:
Known as the Society Scheme Account.
Requires three or more members.
Offers a fixed or variable interest rate depending on the amount and period of savings.
No monthly fees, provided the minimum balance is maintained.
Allows cheque and debit card access (subject to group rules).
Supports electronic and mobile banking access for transparency.
Option for group savings to be used for investments.
Benefits:
Optional access to Value-Added Services (VAS) like funeral plans, grocery vouchers,
and airtime.
Offers 24/7 access via mobile banking for tracking deposits and withdrawals.
Can include a savings calculator tool to forecast returns.
2.3 ABSA Stokvel Account
Features:
Known as the Club Account.
Tailored for group savings, suitable for burial societies, investment clubs, or grocery
stokvels.
Requires a minimum of three signatories.
No monthly management fee if minimum balance is maintained.
Provides tiered interest rates that increase with balance.
Supports electronic banking, statements, and SMS notifications.
Benefits:
Offers cash deposit options at ABSA ATMs and branches.
May include free death benefit cover for members depending on balance and activity.
Goal-based savings support through calculators and in-branch advisory services.
