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I just got a flier from Michael's craft store, and you can also go to their website, Michaels.com and check their jewelry displays. They have some nice velvet bangle/bracelet holders.
I store mine in a bangle holder, that's meant for jewelry store displays:
http://www.gemsondisplay.com/shopexd.asp?id=1668. I love these. There are padded slots for each cuff or bangle bracelet. I also have stored my bangles in their plastic trays. I simply used the cardboard gift boxes that the banlge came in as inserts in the trays (in other words, each box makes 2 "inserts"--the lid and bottom separately). If they had no cotton padding, I just crushed up a wad of tissue paper for the bangle to lay on in the "insert".
I just realized that I've linked to Gems on Display quite a bit since joining here! No, I don't work for them, etc., in case you were wondering! I just like their products and service. They are really suppliers to jewelry stores, but "we" can also buy from them. I love to have the proper storage gadgets for my collection. Looks so pretty...and makes life simpler. Nothing gets damged in storage, too.