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In this tutorial, the creator demonstrates how to make a password-protected text file to store account information securely. By using WinRAR, users can create a password-protected note file and save it in Google Drive for backup. The process involves creating a new text document, entering the desired information, saving it, setting a password, and adding it to an archive. This ensures that account information is safe and easily accessible in case of device issues. Links to download WinRAR are provided in the video description.