Cash in hand and savings decisions

Cash is an important means of transaction, generally assumed to be fungible. However, behavioral economics and consumer research show that ‘cash in hand’, physically holding on cash then handing it away, affects purchasing decisions. I study how hand influences decisions a different, but very domain: savings. Savings accounts are promising tool for reducing poverty, the use savings often puzzlingly low. Holding needs deposited into account may increase psychological costs saving. This experimentally identifies causal effect deposits female microfinance clients Philippines. In contrast many laboratory several field studies with similar interventions, do not find reduced due hand.