You can use the email module with tempalates module. When testing projects I use a gmail address to send emails.
Here is a link to the module
a link to some instructions to get you started implementing the module
and a link to some information about gmail smtp settings
sometimes when you use a gmail address you are blocked by security. If you log into that email address through a browser you will get an email from security and can grant access to your application. I think there is also another security setting to prevent this too.
Hope this helps!