OTE2601
ASSIGNMENT 3 (MEMO) YEAR MODULE
DUE DATE: 8 JULY 2025
Written Assignment Submission Guidelines:
Please ensure that your assignment is submitted electronically through the myUnisa platform no
later than July 2025. Kindly note that fax or email submissions will not be accepted.
NB: Assignment submitted to the lecturer(s) through email will not be considered.
QUESTION 1
Compare the stokvel account from FNB or Standard Bank with ABSA or Nedbank, elaborating on
the types and roles of various stokvels.
Stokvels are cooperative savings groups where members contribute regularly to a collective fund
and take turns receiving lump sums or use the fund for agreed purposes. They play a critical role in
South African communities by promoting savings discipline, mutual support, and financial inclusion
for members who may lack access to formal banking credit facilities.
FNB’s Group Savings Account is specifically designed for stokvels. It requires a minimum opening
deposit, allows multiple signatories, and earns competitive interest. The account offers digital
accessibility through the FNB App, giving transparency and security as all members can view the
balance and transactions, minimising risks of mismanagement. Standard Bank offers the Society
Scheme Account, which is similar in structure, with no monthly fee and interest earned on positive
balances. This account also requires at least two signatories and provides SMS notifications to keep
members updated, enhancing accountability and trust within the group.
ABSA’s Club Account targets stokvels, burial societies, and investment groups. It offers tiered
interest rates, meaning the more the group saves, the higher the interest they earn. It has no
, monthly fees and funds can be managed via online banking, which increases convenience and
security. Nedbank’s Stokvel Account also serves savings groups, allowing members to pool money
securely while earning interest from the first rand deposited. A unique feature of Nedbank’s offering
is embedded funeral cover benefits linked to the account, recognising that many stokvels are burial
societies that prioritise funeral funding. This added insurance gives members peace of mind in times
of bereavement.
There are various types of stokvels. Contribution stokvels involve members contributing fixed
amounts weekly or monthly, with each member taking turns to receive the total pot, enabling bulk
purchases or debt payments. Grocery stokvels collect savings to buy groceries in bulk, often at year-
end, which saves costs and ensures food security. Burial societies save funds to cover funeral costs,
preserving dignity for families during loss. Investment stokvels pool funds to invest in property or
shares, creating wealth over time, while party or social stokvels save towards hosting social events.
The roles of stokvels extend beyond financial functions; they build social networks, provide informal
credit, empower members economically, and promote discipline in saving towards goals. Thus,
while informal stokvels keep cultural bonds strong, formal bank stokvel accounts ensure security,
growth of funds through interest, and protection against mismanagement, making them an
essential bridge between tradition and modern financial systems.
QUESTION 2
Discuss your vital role as an EMS teacher in arranging the flea market, focusing on merits and
demerits.
As an EMS teacher at Ndamulelo High School, my role in organising the flea market is critical for
ensuring that learners acquire entrepreneurship and financial management skills practically.
2.1 Before the flea market
Before the flea market, my role involves planning and preparation. I will guide learners in selecting
appropriate products or services to sell, calculating expected costs and profits, and developing
marketing strategies such as posters and social media promotions. I will also assist them in forming
groups, assigning responsibilities, and preparing a budget. The merit of this preparation phase is
ASSIGNMENT 3 (MEMO) YEAR MODULE
DUE DATE: 8 JULY 2025
Written Assignment Submission Guidelines:
Please ensure that your assignment is submitted electronically through the myUnisa platform no
later than July 2025. Kindly note that fax or email submissions will not be accepted.
NB: Assignment submitted to the lecturer(s) through email will not be considered.
QUESTION 1
Compare the stokvel account from FNB or Standard Bank with ABSA or Nedbank, elaborating on
the types and roles of various stokvels.
Stokvels are cooperative savings groups where members contribute regularly to a collective fund
and take turns receiving lump sums or use the fund for agreed purposes. They play a critical role in
South African communities by promoting savings discipline, mutual support, and financial inclusion
for members who may lack access to formal banking credit facilities.
FNB’s Group Savings Account is specifically designed for stokvels. It requires a minimum opening
deposit, allows multiple signatories, and earns competitive interest. The account offers digital
accessibility through the FNB App, giving transparency and security as all members can view the
balance and transactions, minimising risks of mismanagement. Standard Bank offers the Society
Scheme Account, which is similar in structure, with no monthly fee and interest earned on positive
balances. This account also requires at least two signatories and provides SMS notifications to keep
members updated, enhancing accountability and trust within the group.
ABSA’s Club Account targets stokvels, burial societies, and investment groups. It offers tiered
interest rates, meaning the more the group saves, the higher the interest they earn. It has no
, monthly fees and funds can be managed via online banking, which increases convenience and
security. Nedbank’s Stokvel Account also serves savings groups, allowing members to pool money
securely while earning interest from the first rand deposited. A unique feature of Nedbank’s offering
is embedded funeral cover benefits linked to the account, recognising that many stokvels are burial
societies that prioritise funeral funding. This added insurance gives members peace of mind in times
of bereavement.
There are various types of stokvels. Contribution stokvels involve members contributing fixed
amounts weekly or monthly, with each member taking turns to receive the total pot, enabling bulk
purchases or debt payments. Grocery stokvels collect savings to buy groceries in bulk, often at year-
end, which saves costs and ensures food security. Burial societies save funds to cover funeral costs,
preserving dignity for families during loss. Investment stokvels pool funds to invest in property or
shares, creating wealth over time, while party or social stokvels save towards hosting social events.
The roles of stokvels extend beyond financial functions; they build social networks, provide informal
credit, empower members economically, and promote discipline in saving towards goals. Thus,
while informal stokvels keep cultural bonds strong, formal bank stokvel accounts ensure security,
growth of funds through interest, and protection against mismanagement, making them an
essential bridge between tradition and modern financial systems.
QUESTION 2
Discuss your vital role as an EMS teacher in arranging the flea market, focusing on merits and
demerits.
As an EMS teacher at Ndamulelo High School, my role in organising the flea market is critical for
ensuring that learners acquire entrepreneurship and financial management skills practically.
2.1 Before the flea market
Before the flea market, my role involves planning and preparation. I will guide learners in selecting
appropriate products or services to sell, calculating expected costs and profits, and developing
marketing strategies such as posters and social media promotions. I will also assist them in forming
groups, assigning responsibilities, and preparing a budget. The merit of this preparation phase is
