I had one that was shaped like a pink swan and when you put the key in her wings opened to a fist size opening. It had long hair like a My Little Pony. This has been driving me crazy for some time! Please help :)

Keypers

Here is a link
In The 80s - Toys of the Eighties, Keypers

OMG! That's it! Thank you so much! This has bothered me for years. Now I got to find me one :)

I'm glad. You can probably find one on Ebay. Good luck!