It does not seem that SendGrid has a free account that one could use to test in development mode. What are the current alternatives/best practices for this?
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One good option is using the letter_opener gem. See https://github.com/ryanb/letter_opener
First add the gem to your development environment and run the bundle command to install it.
Then set the delivery method in config/environments/development.rb
Now any email will pop up in your browser instead of being sent. The messages are stored in tmp/letter_opener.