What are the best tools for managing multiple passwords?

I’ve not done an exhaustive study but one of the best password management applications that I’ve found is LastPass, which is free and appears to be very safe.

Of course, nothing is completely safe unless it only exists in your head (assuming that you don’t forget). So if you’re uncomfortable trusting all of your passwords to one source — especially sensitive passwords for banking, for example — then you may want to have a separate system for those.

The best suggestion that I’ve heard to keep track of separate passwords is to use an algorithm to create unique passwords based upon the site name or some other criteria. Some good examples can be found here http://www.dc214.org/notes/july2005/Mnemonic-Password-Algorithms.pdf.