Password managers are software applications used to manage and store users’ passwords created for various online services. The tools eliminate the need for one to remember multiple passwords generated for various web applications, e-commerce sites, or social media platforms. Using a password manager is considered to be one of the top safety practices. This program can be installed on computers and smartphones as an application or as an extension of a compatible browser.

How do password managers work?
Password managers work by storing the passwords in an encrypted database and locking them with a master password. So, users wouldn’t have to remember all account passwords, but only the master password of the password manager app. The app automatically generates and stores passwords for each website or app requiring one to log in. Even better, some password manager apps automatically fill in the login details on web browsers and other apps.

Types
The most common types of password managers are:

Cloud-based password managers: These programs encrypt passwords and other sensitive details on the service provider’s network. The major advantage of this type of password manager app is that it can be accessed anywhere in the world using a computer device. Such apps work on a subscription-based model and require less upfront cost. For businesses, the password managers can be scaled up or down as per the team’s growth. The password manager security here depends on the security of cloud server providers.

On-premise password managers: These password managers are ideal for individuals and enterprises that want to host and manage the software in a closed environment rather than using a third-party server. Unlike cloud-based tools, these apps do not require a stable internet connection but have higher up-front and maintenance costs.

Mobile password managers: While many cloud-based password managers have launched their mobile apps, iOS and Android offer native password manager apps that allow users to securely save and fill login credentials on mobile devices. Most of these apps are free to use and can be instantly accessed anywhere in the world. However, due lack of extensive features, these are limited to personal use, unlike other advanced managers.

Browser-based managers: Popular browsers offer built-in password managers to help users save their credentials, just like apps, but for websites only. Passwords are synced across devices that support these browsers. These tools might be at risk because of shared devices, where multiple users can access browsers.

Single sign-on (SSO): This is an authentication method that allows users to log on to multiple cloud applications using a single set of credentials. To use SSO, users have to authenticate once with an identity provider (IdP) and then use this valid session to access numerous applications configured through SSO with the IdP. The cost for such tools is generally on the higher side, but they can help businesses improve productivity and strengthen their remote work system.

Benefits
Here are a few benefits of using password managers:

Enhanced security: The tool can help one set strong, unique passwords for all accounts and also securely share credentials with trusted contacts. Further, through password auditing, an advanced password manager can identify and update weak passwords. Some of the top apps also offer two-factor authentication (2FA) support to improve account security.

Centralized storage solution: The tool can store all passwords in one secure place. Further, they can maintain sensitive data like PINs and notes.

Easy access: The top password managers provide convenient access to accounts by offering features like auto-fill and auto-login. Users can also make the most of cross-platform compatibility to access their passwords on any device.

Data breach alerts: Password managers can share alerts for compromised credentials.

Tips for choosing the best option
Here are a few tips to help organizations select the top password managers for their teams:

Consider 2FA support: To improve data security, businesses should look for password managers that offer 2FA.

Choose open-source products: Open-source password managers offer access to expert communities that can help one get innovative solutions. Such tools are also user-friendly.

Use trials: To experience the ease of password manager configuration and key features of a shortlisted tool, one can opt for trials before committing to the software.

Consider cloud-based options: Cloud-based password managers are generally safer than browser-based ones for team use. They are also ideal for businesses that prioritize easy accessibility.

Choose tools that allow collaboration: One should pick a tool with features like chat support, CLI integration, and API integration that works with team workflows.

Are password managers safe?
These tools are usually considered safe, with the risks of not using them being higher than using them. Nevertheless, one should look for password manager reviews online to choose the most trusted option.