A recessed key and bit holder for detachably holding at least one drill part such as a drill bit and a chuck key having a chuck key handle and a chuck head, onto a handle base of a power tool. There is at least one recessed area disposed on an enlarged handle base, and at least one spring clip having an anchor end and a retaining end. The anchor end is mounted inside the handle base and the retaining end is located inside the recessed area. The structure also has a finger relief cutout portion formed in connection with the recessed area. The recessed area has a handle portion and a head portion, where the handle portion is shaped to accommodate the chuck key handle and drill bit, and the head portion is shaped to accommodate the chuck head.