There are many options. Subscribe2 is very popular, although I’ve never been a fan. http://subscribe2.wordpress.com/
MailChimp and FeedBurner both offer RSS to Email delivery which can be used for this as well.
JetPack includes a subscribe to new posts function as well: http://jetpack.me/2011/11/29/how-to-use-email-subscriptions-in-jetpack-1-2/
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