Most domain and cheap hosting providers give you a free SMTP server for domains.

Use this in conjunction with a normal Gmail account. Incoming mail is sent to your Gmail via a simple redirect.

For seamless outgoing mail, configure Gmail to send via the SMTP server for your domain.

For bonus points run http://gmvault.org/ somewhere to keep a perfectly restorable copy of your Gmail in case of disaster (this can be restored correctly with all labels intact unlike many simple IMAP or mbox backup solutions)