Well, there go postage rates again

[pendragon1998]

However, under the new law regulating the post office that took effect in late 2006, the agency is allowed to increase rates with 45-days notice as long as changes are within the rate of inflation for the previous 12 months. The Postal Regulatory Commission calculated that rate at 2.9 percent through January, limiting the first-class rate to an increase of just over a penny.

 

Under the new law, postal prices will be adjusted annually each May, the Postal Service said. Officials said they plan to give 90 days notice of future changes, twice what is required by law.

 

While the charge for the first ounce of a first-class letter rises to 42 cents, the price of each added ounce will remain 17 cents, so a two-ounce letter will go up a penny to 59 cents.

 

The cost to mail a post card will also go up a penny, to 27 cents

 

Other increases set for May 12:

 

-- Large envelope, 2 ounces, $1, up 3 cents.

 

-- Money Orders up to $500, $1.05, unchanged.

 

-- Certified mail, $2.70, up 5 cents.

 

-- First-class international letter to Canada or Mexico, 72 cents, up 3 cents.

 

-- First-class international letter to other countries, 94 cents, up 4 cents.

 

Not huge increases, but thought it was relevant.

[DC Dawg]

Not huge increases, but thought it was relevant.

The last time the USPS raised rates, they were chastised for raising it to an odd amount and not considering the potential for the raise in fuel costs. Rather than raise it to the next nickel and manage the money, they are pinching pennies and creating other problems.

 

BTW... to those who want to eliminate cents, please take the USPS as case-in-point that as long as pricing is done on a penny-by-penny basis, the cent will continue to live. You are not going to tell a member of congress that a poor person in their district would not be able to purchase one stamp to mail a bill without receiving the full amount back in change.

 

Scott

[BULLY]

Frankly, it's still the best bargain going to get things where you have to get them.

 

I mean look at that increase of 3 cents -- gonna break the bank eh? Gas prices fluctuate by more than that sometimes during the course of THE SAME DAY.

 

 

[just-john]

What happens with the forever stamps

[pendragon1998]

The forever stamps will increase in price as well and be sold at the new first class rate, but previously sold forever stamps will continue to be honored.

[BULLY]

What happens with the forever stamps

 

 

That was the whole idea behind "forever" stamps -- that they would cover ALL rate increases, as the name implied, forever.

 

Personally, if I had a supply if them, I wouldn't be whipping them out for a 1 cent postage increase. I'd buy myself a sheet or two of 1 cent stamps for a buck, and save those "Forever" stamps for the dark days when postage rates are doubled or something. At least when the rate increase is more substantial than 1 cent. Even a cent isn't worth a cent as we learned this year when the Mint banned the export and melting of the coins, because the value of the zinc in the coins was worth more than the face value.

 

To use Forever Stamps for a rate increase from 41c to 42c? My says save them for when it really matters and the impact is greater and you can maximize the savings.

 

Heck, leave them in your will to your kids!

[gmarguli]

That's the exact type of thinking that the Post Office wants. Buy now, use later.

 

If you took that 41c for the stamp and stuck it in a savings account at 5% it'd be worth 43c in a year. However, a year later you could buy the stamp for 42c. You saved 1c on the stamp, but lost out on worth of interest.

 

The price of stamps has not kept up with the rate of return you could get from investing the money. Not even close! It's wiser to buy the stamps as needed and invest the extra money.

[WinstonWare]

All stamps should have been "forever stamps!"

[physics-fan3.14]

That's the exact type of thinking that the Post Office wants. Buy now, use later.

 

If you took that 41c for the stamp and stuck it in a savings account at 5% it'd be worth 43c in a year. However, a year later you could buy the stamp for 42c. You saved 1c on the stamp, but lost out on worth of interest.

 

The price of stamps has not kept up with the rate of return you could get from investing the money. Not even close! It's wiser to buy the stamps as needed and invest the extra money.

 

Huh. That explains how the post office can afford to issue forever stamps. I was a bit confused before.

[pendragon1998]

That's the exact type of thinking that the Post Office wants. Buy now, use later.

 

If you took that 41c for the stamp and stuck it in a savings account at 5% it'd be worth 43c in a year. However, a year later you could buy the stamp for 42c. You saved 1c on the stamp, but lost out on worth of interest.

 

The price of stamps has not kept up with the rate of return you could get from investing the money. Not even close! It's wiser to buy the stamps as needed and invest the extra money.

 

 

 

You hit the nail on the head.