[TYPE THE COMPANY NAME]
OTE2601
Assignment 3
(COMPLETE
ANSWERS) 2025
- DUE 8 July
2025
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
,the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, 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)
To compare the stokvel accounts offered by banks such as FNB or Standard Bank with those
from ABSA or Nedbank, it is important to first understand what a stokvel is and the different
types and roles these informal savings groups play in South African communities.
What is a Stokvel?
A stokvel is a traditional savings scheme in which a group of people come together to contribute
fixed amounts of money regularly, either weekly, monthly, or annually. The pooled funds are
then distributed among members on a rotating basis or used for collective benefits like
investment, groceries, or funeral expenses.
Types and Roles of Stokvels
1. Savings Stokvels: Members contribute money regularly and receive a lump sum in turns.
The purpose is usually for personal or household use.
2. Investment Stokvels: These groups pool funds to invest in property, businesses, or other
ventures for profit.
, 3. Grocery Stokvels: Funds are collected to bulk-buy groceries at the end of the year for
distribution among members.
4. Burial/Funeral Stokvels: Designed to support members during bereavements, covering
funeral expenses.
5. Loan Stokvels: Members borrow from the group fund at interest. Interest collected
boosts the group’s savings.
Stokvels promote community cooperation, financial discipline, and economic participation,
especially in underserved areas.
Comparison of Bank-Managed Stokvel Accounts
Feature FNB or Standard Bank ABSA or Nedbank
FNB Stokvel Account offers a group ABSA Stokvel Account offers interest-
savings account with multiple signatories. bearing savings with group access.
Account
Standard Bank's Society Scheme Nedbank Stokvel Account provides
Type
Account is similar, focused on group tiered interest rates based on savings
needs. amount.
Offers secure banking with fraud
Similar security measures, including
Security protection, online access, and secure
alerts and digital banking features.
withdrawals.
Interest Interest is earned on balances above a Nedbank offers competitive tiered
Rates certain threshold (varies by bank). interest; ABSA varies based on terms.
Similar low fees, with some offering
Low to zero monthly fees depending on
Fees zero monthly charges for non-profit
activity and balance.
stokvels.
Access to Requires multiple signatories for Same model – promotes group decision-
Funds withdrawals, reducing risk. making and financial integrity.
Funeral cover options, financial Similar benefits – Nedbank also offers
Additional
education, and access to group loan budgeting tools and group financial
Benefits
products. planning.
Conclusion
While informal stokvels offer flexibility and community trust, formal stokvel accounts provided
by banks like FNB, Standard Bank, ABSA, and Nedbank offer enhanced security, interest-
earning potential, and additional financial services such as insurance and investment advice.
Choosing between these options depends on the group's priorities—whether it’s maximising
returns, improving financial literacy, or ensuring safer transactions. Nonetheless, all bank stokvel
accounts aim to formalise and support the core role of stokvels in promoting collective financial
empowerment in South Africa
OTE2601
Assignment 3
(COMPLETE
ANSWERS) 2025
- DUE 8 July
2025
NO PLAGIARISM
[Pick the date]
[Type the abstract of the document here. The abstract is typically a short summary of the contents of
,the document. Type the abstract of the document here. The abstract is typically a short summary of
the contents of the document.]
, 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)
To compare the stokvel accounts offered by banks such as FNB or Standard Bank with those
from ABSA or Nedbank, it is important to first understand what a stokvel is and the different
types and roles these informal savings groups play in South African communities.
What is a Stokvel?
A stokvel is a traditional savings scheme in which a group of people come together to contribute
fixed amounts of money regularly, either weekly, monthly, or annually. The pooled funds are
then distributed among members on a rotating basis or used for collective benefits like
investment, groceries, or funeral expenses.
Types and Roles of Stokvels
1. Savings Stokvels: Members contribute money regularly and receive a lump sum in turns.
The purpose is usually for personal or household use.
2. Investment Stokvels: These groups pool funds to invest in property, businesses, or other
ventures for profit.
, 3. Grocery Stokvels: Funds are collected to bulk-buy groceries at the end of the year for
distribution among members.
4. Burial/Funeral Stokvels: Designed to support members during bereavements, covering
funeral expenses.
5. Loan Stokvels: Members borrow from the group fund at interest. Interest collected
boosts the group’s savings.
Stokvels promote community cooperation, financial discipline, and economic participation,
especially in underserved areas.
Comparison of Bank-Managed Stokvel Accounts
Feature FNB or Standard Bank ABSA or Nedbank
FNB Stokvel Account offers a group ABSA Stokvel Account offers interest-
savings account with multiple signatories. bearing savings with group access.
Account
Standard Bank's Society Scheme Nedbank Stokvel Account provides
Type
Account is similar, focused on group tiered interest rates based on savings
needs. amount.
Offers secure banking with fraud
Similar security measures, including
Security protection, online access, and secure
alerts and digital banking features.
withdrawals.
Interest Interest is earned on balances above a Nedbank offers competitive tiered
Rates certain threshold (varies by bank). interest; ABSA varies based on terms.
Similar low fees, with some offering
Low to zero monthly fees depending on
Fees zero monthly charges for non-profit
activity and balance.
stokvels.
Access to Requires multiple signatories for Same model – promotes group decision-
Funds withdrawals, reducing risk. making and financial integrity.
Funeral cover options, financial Similar benefits – Nedbank also offers
Additional
education, and access to group loan budgeting tools and group financial
Benefits
products. planning.
Conclusion
While informal stokvels offer flexibility and community trust, formal stokvel accounts provided
by banks like FNB, Standard Bank, ABSA, and Nedbank offer enhanced security, interest-
earning potential, and additional financial services such as insurance and investment advice.
Choosing between these options depends on the group's priorities—whether it’s maximising
returns, improving financial literacy, or ensuring safer transactions. Nonetheless, all bank stokvel
accounts aim to formalise and support the core role of stokvels in promoting collective financial
empowerment in South Africa
