It’s better than using the same few passwords everywhere. Passwords are being phased out though. The future is passkeys.
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I don't trust SaaS ones not because I don't think they're not doing all due diligence, but because a SaaS password manager is the juiciest of juicy targets and eventually someone will succeed in cracking one.
I personally use KeepassXC, which is a local password manager. Most of the benefits of a SaaS one with some extra work handling sync and backup yourself.
Any password manager is a good and secure alternative because they do not have any interest in knowing or exposing your password. They will run out of business very quick if they allow it! Passwords are just a method to identify you as you in the internet so they can sell you stuff! Even google will go to great extents to guarantee you is you because is at its core business. For sites where you do not trust passwords you can use 2FA of a secondary provider. For sites that are really important you probably will have a dedicated app (government ids, work…) as they do have invested interest on nobody else knowing your password. So yes, they are as secure as technically possible.
Special note about file based PM: the only person interested on that file to be secret is you! So those are great source of discomfort for me as files are heavily analyzed by systems and platforms. And any file can be brute forced open given enough processing power or enough tech (AI, Quantum computing…) So don’t lie yourself: going lone wolf do not make it safer.
I let Chrome deal with it, but wonder what happens if someone steals %appdata% these days.
I won't say which manager I use, but I used a 'tool' on it which cracked my access password in very little time revealing all my passwords. - a bit worrying.
Do I still use that manager? Yes, it's convenient and fits my risk profile.
Have I upgraded my master password? Yes. Less convenient, but is all a trade off.
If I was a higher profile target, my assessment may be different.
Well yeah key-stretching can't do much for weak passwords
And that's the point, a password vault is literally all your eggs in one basket. It only gives security if you are secure across the board.