I am not going to sit and promote 1and1 because there are some obvious drawbacks. But I do have to say that they don't just keep charging and charging you....
When you sign up for the free domain, they tell you from the start that your card will be charged I think $6 and then they refund it...just like most other sites do when they are verifying your card. It may bit higher than the rest but you get it back so it is no big deal in my mind.
The biggest pain in the ass is cancelling the domain if you are done with it so I encourage anyone who registers with them to learn how to use cancel.1*and1.c0m. As soon as you register your domain, you can go right in there and slect to turn off the auto-renew feature and it will not renew your domain. If you don't adjust anything, they will renew it in one year.
They will track you down if you don't pay though so be sure to keep your CC details up to date. I got a collection letter one day because my expiry date on my card passed. That being said, if you are new to the business and don't have a big budget, look for the deals at 1and1 and just stay on top of things and you will be fine.