diff --git a/app/notifications/process_notifications.py b/app/notifications/process_notifications.py
index 100790f83..20c77d188 100644
--- a/app/notifications/process_notifications.py
+++ b/app/notifications/process_notifications.py
@@ -18,6 +18,7 @@ from app.models import (
     EMAIL_TYPE,
     KEY_TYPE_TEST,
     SMS_TYPE,
+    LETTER_TYPE,
     NOTIFICATION_CREATED,
     Notification,
     ScheduledNotification
@@ -105,6 +106,8 @@ def persist_notification(
         notification.rate_multiplier = recipient_info.billable_units
     elif notification_type == EMAIL_TYPE:
         notification.normalised_to = format_email_address(notification.to)
+    elif notification_type == LETTER_TYPE:
+        notification.postage = service.postage
 
     # if simulated create a Notification model to return but do not persist the Notification to the dB
     if not simulated:
diff --git a/tests/app/celery/test_tasks.py b/tests/app/celery/test_tasks.py
index 2dea9b865..6f9082408 100644
--- a/tests/app/celery/test_tasks.py
+++ b/tests/app/celery/test_tasks.py
@@ -982,6 +982,32 @@ def test_save_letter_saves_letter_to_database(mocker, notify_db_session):
     assert notification_db.reply_to_text == contact_block.contact_block
 
 
+@pytest.mark.parametrize('postage', ['first', 'second'])
+def test_save_letter_saves_letter_to_database_with_correct_postage(mocker, sample_letter_job, postage):
+    sample_letter_job.service.postage = postage
+
+    mocker.patch('app.celery.tasks.letters_pdf_tasks.create_letters_pdf.apply_async')
+
+    notification_json = _notification_json(
+        template=sample_letter_job.template,
+        to='Foo',
+        personalisation={'addressline1': 'Foo', 'addressline2': 'Bar', 'postcode': 'Flob'},
+        job_id=sample_letter_job.id,
+        row_number=1
+    )
+    notification_id = uuid.uuid4()
+
+    save_letter(
+        sample_letter_job.service_id,
+        notification_id,
+        encryption.encrypt(notification_json),
+    )
+
+    notification_db = Notification.query.one()
+    assert notification_db.id == notification_id
+    assert notification_db.postage == postage
+
+
 def test_save_letter_saves_letter_to_database_right_reply_to(mocker, notify_db_session):
     service = create_service()
     create_letter_contact(service=service, contact_block="Address contact", is_default=True)
diff --git a/tests/app/notifications/test_process_letter_notifications.py b/tests/app/notifications/test_process_letter_notifications.py
index a607bf68b..48fc2962b 100644
--- a/tests/app/notifications/test_process_letter_notifications.py
+++ b/tests/app/notifications/test_process_letter_notifications.py
@@ -25,6 +25,7 @@ def test_create_letter_notification_creates_notification(sample_letter_template,
     assert notification.key_type == sample_api_key.key_type
     assert notification.reference is not None
     assert notification.client_reference is None
+    assert notification.postage == 'second'
 
 
 def test_create_letter_notification_sets_reference(sample_letter_template, sample_api_key):
diff --git a/tests/app/v2/notifications/test_post_letter_notifications.py b/tests/app/v2/notifications/test_post_letter_notifications.py
index 72afe5214..cbf9ca471 100644
--- a/tests/app/v2/notifications/test_post_letter_notifications.py
+++ b/tests/app/v2/notifications/test_post_letter_notifications.py
@@ -76,12 +76,11 @@ def test_post_letter_notification_returns_201(client, sample_letter_template, mo
     assert Job.query.count() == 0
     notification = Notification.query.one()
     assert notification.status == NOTIFICATION_CREATED
-    notification_id = notification.id
-    assert resp_json['id'] == str(notification_id)
+    assert resp_json['id'] == str(notification.id)
     assert resp_json['reference'] == reference
     assert resp_json['content']['subject'] == sample_letter_template.subject
     assert resp_json['content']['body'] == sample_letter_template.content
-    assert 'v2/notifications/{}'.format(notification_id) in resp_json['uri']
+    assert 'v2/notifications/{}'.format(notification.id) in resp_json['uri']
     assert resp_json['template']['id'] == str(sample_letter_template.id)
     assert resp_json['template']['version'] == sample_letter_template.version
     assert (
@@ -95,6 +94,28 @@ def test_post_letter_notification_returns_201(client, sample_letter_template, mo
     mock.assert_called_once_with([str(notification.id)], queue=QueueNames.CREATE_LETTERS_PDF)
 
 
+@pytest.mark.parametrize('postage', ['first', 'second'])
+def test_post_letter_notification_sets_postage(client, sample_letter_template, mocker, postage):
+    sample_letter_template.service.postage = postage
+    mocker.patch('app.celery.tasks.letters_pdf_tasks.create_letters_pdf.apply_async')
+    data = {
+        'template_id': str(sample_letter_template.id),
+        'personalisation': {
+            'address_line_1': 'Her Royal Highness Queen Elizabeth II',
+            'address_line_2': 'Buckingham Palace',
+            'address_line_3': 'London',
+            'postcode': 'SW1 1AA',
+            'name': 'Lizzie'
+        }
+    }
+
+    resp_json = letter_request(client, data, service_id=sample_letter_template.service_id)
+
+    assert validate(resp_json, post_letter_response) == resp_json
+    notification = Notification.query.one()
+    assert notification.postage == postage
+
+
 @pytest.mark.parametrize('env', [
     'staging',
     'live',
@@ -441,8 +462,10 @@ def test_post_precompiled_letter_with_invalid_base64(client, notify_user, mocker
     assert not Notification.query.first()
 
 
-def test_post_precompiled_letter_notification_returns_201(client, notify_user, mocker):
+@pytest.mark.parametrize('postage', ['first', 'second'])
+def test_post_precompiled_letter_notification_returns_201(client, notify_user, mocker, postage):
     sample_service = create_service(service_permissions=['letter', 'precompiled_letter'])
+    sample_service.postage = postage
     s3mock = mocker.patch('app.v2.notifications.post_notifications.upload_letter_pdf')
     mocker.patch('app.v2.notifications.post_notifications.pdf_page_count', return_value=5)
     mocker.patch("app.letters.rest.notify_celery.send_task")
@@ -464,6 +487,7 @@ def test_post_precompiled_letter_notification_returns_201(client, notify_user, m
 
     assert notification.billable_units == 3
     assert notification.status == NOTIFICATION_PENDING_VIRUS_CHECK
+    assert notification.postage == postage
 
     resp_json = json.loads(response.get_data(as_text=True))
     assert resp_json == {'id': str(notification.id), 'reference': 'letter-reference'}
diff --git a/tests/app/v2/notifications/test_post_notifications.py b/tests/app/v2/notifications/test_post_notifications.py
index 707ab2a04..2ea9582da 100644
--- a/tests/app/v2/notifications/test_post_notifications.py
+++ b/tests/app/v2/notifications/test_post_notifications.py
@@ -58,6 +58,7 @@ def test_post_sms_notification_returns_201(client, sample_template_with_placehol
     assert len(notifications) == 1
     assert notifications[0].status == NOTIFICATION_CREATED
     notification_id = notifications[0].id
+    assert notifications[0].postage is None
     assert resp_json['id'] == str(notification_id)
     assert resp_json['reference'] == reference
     assert resp_json['content']['body'] == sample_template_with_placeholders.content.replace("(( Name))", "Jo")
@@ -309,6 +310,7 @@ def test_post_email_notification_returns_201(client, sample_email_template_with_
     assert validate(resp_json, post_email_response) == resp_json
     notification = Notification.query.one()
     assert notification.status == NOTIFICATION_CREATED
+    assert notification.postage is None
     assert resp_json['id'] == str(notification.id)
     assert resp_json['reference'] == reference
     assert notification.reference is None