Yes, the type is textdesigned to store character strings.
The usual approach is to use a Javascript text editor that generates HTML. You save raw HTML directly to the database, and then sanitize it when it is displayed. This is to ensure that people do not enter Javascript and other nasty things in a text area that could be executed when other visitors view their input.
Rails 3 deactivates your default output, so all HTML will be escaped. You will need to call either <%= @model.rich_text.html_safe %>to skip this disinfecting call (or much better!) <%= sanitize(@model.rich_text, :tags => %w(b i p)) %>, Passing an explicit list of allowed tags.
I have no experience with Heroku, but I cannot imagine that it will be any different.
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