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On November 18, 2004, Hotmail began offering email addresses from several country-specific domains. Now users can register a @hotmail.co.uk address. MSN had run auctions on eBay for popular addresses and the money had been donated to the NSPCC.

Until May 10 2005 the special feature of including dots in the email address wasn't available, but with growing competition from other free email providers like Gmail and Yahoo, this feature made available to users.

A Hotmail account is temporarily deactivated (all messages cleared, although not the address book) if the user abandons it for a month or more. It may even be permanently deleted eventually. Hotmail Plus customers (customers who pay for extra storage) are exempt from deactivation.