I bought a little box at Hobby Lobby called the needle nest..No reason why an altoid tin or something with a lid and a magnet wouldn't work the same. The reason I like mine though is I can see thru the clear lid. =)

Jan do you happen to have a picture of the needle holder that you described? I'd love to make one, but do much better with a visual.

I have one of these too, and it works great! My step-mom gave it to me, because she has one, likes it too, and wanted to share! :-D