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In this video tutorial, the speaker demonstrates options for saving files in various formats, including auto-save settings and version history for Microsoft 365 users. When creating a new workbook, it is initially named 'Book1' or similar. To save the workbook, users can go to the File tab and click 'Save' or use the keyboard shortcut Ctrl + S. The first time you save, a dialog box prompts you to choose a folder and name the file, where the .xlsx extension will be automatically added upon saving. Various file types are available for selection, with .xlsx as the default. For workbooks with macros, it's recommended to save as .xlsm. Other formats include binary and CSV.