There are many such services online providers online, just do a google and you see a whole list of them freely available.
From Yahoogroups, Google Groups,
In this blog, I am using FeedBlitz.com a very stable and up-to-date service provider. You cant complain mush for a free service that gives a all rounder.
FeedBlitz.com
FeedBlitz is a service that monitors blogs, RSS feeds and Web URLs to provide greater reach for feed publishers. FeedBlitz takes all the headache out of converting feed and blog updates into email digests, delivered daily to subscribers' inboxes. FeedBlitz manages subscriptions, circulation tracking, testing, and is compatible with all major blogging platforms and services such as Blogger, Typepad and FeedBurner. Unlike other blogmail services, FeedBlitz is reliable, scalable and fully supported. No betas, wish lists or road map items here. You're in production, and so is FeedBlitz. 
FeedBlitz also enables end users to monitor any feed or blog, anonymously if they wish, regardless of whether the publisher of that feed is using FeedBlitz. FeedBlitz therefore provides a simple way for users to receive updates from their trusted sources using a familiar and ubiquitous medium - email.
YahooGroups.com
Another free service from Yahoo. 
Start a group for your friends, family, club, or other organization. Create a group to find others who share your own particular interest. Features; Message archive, Photos, Calendar, Polls, Links. GoogleGroups.com
Another tight integrated free service is from Google. 
Create and join groups to discuss topics, Setup mailing lists to stay in touch, Search and access over 1 billion posts. Send newsletters and plan group events and Bookmark your favorite discussions. It is similar to Yahoogroups which started much earlier than Google groups but it is gaining popularity amongst many users too. Go check it out.
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