The Vassar Bank was incorporated and opened in the Wagner Inn.  Concerned by the inequity between men students’ ability to hold their college funds in bank accounts while women received allowances that the college held and disbursed, President MacCracken had established early in his presidency a bank for students in Main Building.  Open to the Arlington community and a site for much of the college's financial activity, the new bank was set up so that the college would no longer serve as students’ de facto bank and to enable students to learn more about personal finances.  

The bank's officers included Dr. William Bancroft Hill, professor of religion, Professors of Economics Mabel Newcomer and Herbert E. Mills, President MacCracken and Olive M. Lapham '17.

The bank stayed afloat during the Great Depression and continued in operation until 1947, when it was consolidated with the First National Bank of Poughkeepsie.