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A password vault is a software program that keeps a number of passwords in a secure digital location. By encrypting the password storage, the password vault offers users the ability to use a single master password for accessing a number of different passwords used for different websites or services.
A password vault is also often called a password manager. In some cases, the software provider may add the word "manager" to the name of the password vault tool. In other cases, the terms "password vault" and "password manager" are used interchangeably. Users may prefer to use the former term because it sounds more secure, recalling a physical vault.
The idea behind the password vault is that it is not really safe to replicate passwords across different websites and to use relatively weak passwords in order to try to remember all of the different passwords that people use online. The password vault or password manager does a lot of the work for the user in that it maintains all of the different passwords in one secure space.