It's not that banks are bad. Star's experience is all too familiar to small-business owners searching for ways to cut the escalating cost of banking. As the big national banks scoop up the community banks, they raise all their charges. Last month, the Federal Reserve issued its annual report to Congress on bank fees and services. It found large banks that operate across state lines charge significantly higher fees than small or community banks operating locally.
Larger institutions use their size as a weapon.
But recently, large banks have changed their approach. When you build a relationship, you can feel the discount. Stay away from the large banks, or you'll get discouraged. Shop around for the best deal. Bank fees vary widely.