A storage container for housing bits includes a first housing portion and a second housing portion pivotally connected through a hinge for moving between open and closed positions. The first housing portion defines a first body cavity and the second housing portion defines a second body cavity in the closed position. At least one bit holder is pivotally connected to the hinge and arranged to fit within the first body cavity in the closed position. The bit holder includes a plurality of bit receiving portions formed thereon for accepting the bits. The bit receiving portions are generally parallel to the hinge. A cover is pivotally connected to the second housing portion and moveable between open and closed positions for accessing the second body cavity.