Abstract: A retainer clip for tool bits comprises an annular strip having circumferentially spaced ends defining a gap therebetween. A pair of proximate projections and at least one remote projection project outwardly from the strip. The proximate projections are located on opposite sides of the gap. The proximate projections include positively oriented front surfaces, and the remote projection includes a non-positively oriented front surface disposed longitudinally rearwardly relative to forwardmost portions of the front surfaces of the proximate projections. Upon forward displacement of the clip within the hole of a holder, contact occurs between the proximate projections and a wall of a retaining groove of the holder to produce radial shifting of the gap of the clip toward the axis of the bit. Removal of the bit from the hole is possible only by shearing the remote projection.