A screwdriver is provided with a handle including an insert and an O-ring wherein the O-ring is positioned between the insert and a shoulder in the opening into the handle. A bit is held in the handle by the O-ring. A method of assembly is provided wherein an O-ring and an insert member are positioned around a shaft of a bit and then the bit is inserted into a handle, followed by the O-ring and the insert. The bit is removed from the handle leaving the O-ring positioned between the insert and a shoulder of the handle, for subsequent receipt of the same end of the bit, another end of the bit, or a different bit.
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