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There's a service called Mail Chimp that allows up to 2000 subscribers for free and I think the max number of messages is 12000/mo (meaning you could send 6 messages a month to 2000 subscribers). After that you have to pay for the service. But if you think 2000 is a number you won't reach for a good while, then it would be a great option for you. They have templates and a template builder in the program so you can create your emails. They also have training sessions online which are free, that show you how to use their service.
There's also Constant Contact, but I have heard that they are really bad about blacklisting you if ONE person yells spam. Really frustrating, it takes days and days to get them to lift the ban and several emails back and forth. I don't have experience with them, but a friend of mine with a retail website does.
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