Forever Stamps, Now a Good Investment

Are Forever Stamps a Good Deal?
The United States Post Office is increasing their rates May 11, 2009 by two cents. So a first class letter will soon cost 44 cents to mail. If you buy Forever stamps before the rate hike, however, you can still use them after prices go up. This saves you two cents per letter, or about a half of a percent.

When the USPS first introduced Forever Stamps two years ago Washington Post reporter Allan Sloan wrote, "Hoarding Forever Stamps makes financial sense if you think postal costs will rise at a higher rate than your after-tax earnings on a money-market mutual fund -- currently about 3.5 percent a year for someone in the 30 percent tax bracket".

Two years ago the price increase was once cent, from 41 to 42 cents. At an increase of 2.4 percent that makes for a poor investment. (History buffs can see the history of postage rate increases here.)

Since Forever Stamps will save you 4.5 percent this year, buying extra sheets may be a good idea. Most CD rates are hovering above 2 percent.