Photoshop users already know that there are various file formats in which the images can be saved. The file formats are there to cater the specific needs in terms of quality and use of the image. Here’s an insight into what the file formats stand for. Adobe Photoshop default (PSD) PSD file is a layered image file used in Adobe PhotoShop (PSD), which stands for Photoshop Document, is the default format that Photoshop uses for saving data. PSD is a proprietary file that allows the user to work with the images individual layers even after the file has been saved. TIFF (Tagged Image File Format) TIFF is a lossless file format which is popular among graphic artists, photographers, and publishers.