HT4972 will the info in my apps (Passwords, notes and records) be saved when I update to iOS5

will the info in my apps (Passwords, notes and records) be saved when I update to iOS5

Yes, as long as you back up the iPod first via iTunes before performing the update.  Use the instructions in this Apple support document to walk you through the upgrade process.
iOS: How to update your iPhone, iPad, or iPod touch
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