Whether you’re formatting an internal drive, external drive, or removable drive, Windows gives you the choice of using three different file systems: NTFS, FAT32, and exFAT. The Format dialog in Windows doesn’t explain the difference, so we will.A file system provides a way of organizing a drive. It specifies how data is stored on the drive and what types of information can be attached to files—filenames, permissions, and other attributes. Windows supports three different file systems. NTFS is the most modern file system. Windows uses NTFS for its system drive and, by default, for most non-removable drives. FAT32 is an older file system that’s not as efficient as NTFS and doesn’t support as big a feature set, but does offer greater compatibility with other operating systems. exFAT is a modern replacement for FAT32—and more devices and operating systems support it than NTFS—but it’s not nearly as widespread as FAT32.
MORE: What’s the Difference Between FAT32, exFAT, and NTFS?
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