Why should I use an online password manager?
Most Internet users have at the very least a dozen Internet passwords, probably more, unless you are Einstein it is impossible to make a very hard to remember an ideal hard to crack password using special characters with small and capital letter cases and remembering all of them. Users end up creating an easy to guess password or reuse the same password across many websites.
While online banks are normally secure, with their fair share of failures, the main pitfall is that an easy to hack website, such as an amateurish run forum in which you might have registered will have its database stolen, even if you don’t care about having that forum account stolen, a black hat hacker is likely to try if the stolen passwords and usernames have also been used for your Facebook or email account.
Online password managers allow you to use unique extremely hard to crack passwords and remembering all of them, they also save you time by not having to type your username and password every time you login into a site, entering the pass and user automatically for you.
Ten online password managers
Note: Some of the password managers here are only free for a certain length of time or have limited features in their free version.
Xecrets: Online password manager from the makers of Axcrypt, a free open source encryption software, Xecrets will not store your master password on their servers, only briefly in memory during the time you are visiting.
LastPass: Online password manager compatible with all browsers, it can also be synchronized across them. LastPass offers storage of encrypted secure notes in your account, all of the data is encrypted using 256-bit AES implemented in C++ and JavaScript to perform encryption locally on your computer, nothing in plain text is sent to their servers. There is support for USB keys, Yubikey, one time password and a mobile version of this password storage application.
PassPack: An ideal online password manager to share secret passwords with your team, Passpack has special features enabling secure password sharing online, PassPack never sees your passwords on its unencrypted form.
PassPack also offers a desktop password manager client available for Windows, Mac and Linux that syncs all of the passwords, online and offline data is encrypted using AES256-bit cryptography.

PassPack online password manager
Mitto: Free Internet password storage service, all passwords are encrypted using 1024 bit RSA or 256 bit AES algorithms, you can have automatic logins, password tagging for better organizing them, sharing of passwords with a trusted group of people, password generator and cross browser compatibility by using a bookmarklet.
LogAway: Online password manager using 256-bit AES encryption in C++ and JavaScript. Encryption and decryption of the passwords takes place on your local computer, nobody at Logaway can ever access your sensitive data. All of the encryption takes places locally and nothing in plain text is never retained or even transmitted to LogAway’s servers, cross browser compatible.
MashedLife: Purely web based online manager that helps you manage all of your online accounts from one place, no communication goes through Mashed Life and your computer after you are logged in, all of the encryption is carried out locally.
PasswordSafe: Free convenient online password manager with an additional desktop password manager that syncs the passwords with the encrypted database online. All database information, usernames and passwords are encrypted on your machine PasswordSafe never has access to plain data.
Clipperz: A zero maintenance cross platform online password manager with nothing to install, Clipperz uses a bookmarklet or sidebar to create and use direct logins. There is also an offline password manager version of Clipperz to take the passwords with you if travelling.
Password strength indicator, application locking, SSL secure connection, one time password and a password generator are some of the features this online password manager offers.

Clipperz online password manager
DataInherit: This online password manager encrypts passwords in the memory of the client computer when the password safe is in use. Only when a single password is actually viewed or used by the client it will be temporarily decrypted and displayed. For encryption cryptographic standards such as AES-256 and RSA-2048 are used.
HalfData: Uses Triple DES to encrypt their database, powerful cryptographic algorithm. Assuming you have used a strong password Triple DES, aka 3DES, would take hundreds of years to crack . HalfData doesn’t keep neither your password nor encryption key in their servers, the encryption is performed in the user’s computer before sending out the data.
How safe are online password managers?
In order to make sure all of your online passwords are in good hands, you should look for these features in a good online password manager:
- A safe sound cryptography algorithm is being used (i.e. AES, Blowfish, etc)
- All of the encryption is performed on your computer before being sent to their servers
- Your connection with the password manager is made using Secure Socket Layer (SSL) encryption at all times
- No backdoors are included other than resetting your forgotten master password sending you an email
- There is support available in case you have problems
- Browser and operating system compatibility