Forever?

The Forever Stamp: good deal or bad deal? Let's see. Since 1995, postal rates have gone up, on average, every 2.5 years. The average increase has been 5.1%. Now, let's do a little hypothetical:

You buy 2,439 forever stamps today for $1,000 (you get a penny back in change). Then you stash them away for the next 2.5 years. At that time, postal rates go up to 43¢ (a 4.9% increase). You can now mail 2,439 first class letters for your original $1,000 outlay.

Your foolish neighbor, who bought no forever stamps, must spend $1,048.77 to mail 2,439 letters at the new rate. BUT, when you bought your forever stamps, your neighbor bought a $1,000 CD with an APY of 4.76%, today's going rate. Before going to the Post Office to buy his 2,439 stamps, he stops by the bank and cashes in his CD for $1,123.28. After buying his stamps, he has $74.51 left to spend on ice cream (or whatever).

Even when you subtract the penny you got in change, your neighbor still did $74.50 better than you did.