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PSD might be the default file format for Photoshop files, but saving in TIFF format has advantages. TIFF files are usually compatible with other graphic design programs, unlike PSD files. In an emergency situation or for last-minute modifications, using TIFF can be crucial if Photoshop is unavailable. Additionally, TIFF files consume less disk space and can be compressed to less than half the size of a PSD without losing quality. Consider saving files in TIFF format for convenience and compatibility with various software programs.