Must I use cloud passwords?

Hello:  I did search but found no definitive answer for the current version of 360, If I were to go to pd version (from cnss), would I not be able to store my pw locally on pc must I use the cloud?  ( to avoid two posts is this true for nis too?)

 

This would be a new install new purchase.

 

Thank you for info.  I really must know for certain before I decide.