I like to use MailChimp because they have great templates that you can use but you have to pay to get rid of their branding on sign up forms and newsletters. Aweber is another popular one.
If you have access to a barebones newsletter/email system then you can use that and Amazon SES. It's a shit load cheaper than using mailchimp, constantcontact or other newsletter services. You pay for emails sent, and the size.
Just jumping in to give props to MailChimp as well. I think it's light years better than Constant Contact. Excellent interface, beautiful templates...everything you need really.
Aweber is simply fantastic and has tremendous functional support when you need it from their customer service. It works very well with WordPress for me and the best part is that from a pricing perspective, I find it pretty reasonable. You could also try MailChimp!
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