A password manager is a software application or a tool in other words, that allows users to organize and securely store passwords for websites, files, email accounts, etc.
The password manager normally is an application that would store the credential in an encrypted format on the local disk.
Some password managers are acting as form fillers and often have extensions for web browsers.
The main three types of password managers are:
• Desktop based software applications that get installed on the system and reside on the hard drive of the computer.
• Mobile or portable applications that can reside on mobile devices like smartphones, iPhones, etc.
• Web-Based password managers have hosted applications on servers and the passwords are stored on the webserver.
Password managers have the capability of defending against phishing as they are not limited by visual imitations. Most of the password managers out there are capable of handling automated scripts and can handle complex login procedures such as those present for online banking.
Password manager saves the user from remembering a series of a username and password combinations. The user can feed in those credentials one time in the password manager and as and when required get the password manager to fill the credentials automatically for them.
Most password managers employ strong encryption techniques to store the user credential sets and hence are prone to unauthorized access.
But having said that, there are cases when brute force attacks on the password manager itself can be carried out to reveal all the credential sets that are stored inside of a password manager. It is always a best practice to check on the encryption technologies that have been implemented on the password manager before choosing a password manager for your needs.