NTFS Vs FAT and FAT32

As most of the computer might know, Windows supports three types of file systems - FAT, FAT32 and NTFS.

FAT is a file system used by MS-DOS and other Windows-based operating systems to organize and manage files. The file allocation table (FAT) is a data structure that Windows creates when you format a volume by using the FAT or FAT32 file systems. Windows stores information about each file in the FAT so that it can retrieve the file later.

FAT32 is a derivative of the file allocation table (FAT) file system. FAT32 supports smaller cluster sizes and larger volumes than FAT, which results in more efficient space allocation on FAT32 volumes.

NTFS (New Technology File System) is an advanced file system that provides performance, security, reliability, and advanced features that are not found in any version of FAT. For example, NTFS guarantees volume consistency by using standard transaction logging and recovery techniques. If a system fails, NTFS uses its log file and checkpoint information to restore the consistency of the file system. In Windows 2000 and Windows XP, NTFS also provides advanced features such as file and folder permissions, encryption, disk quotas, and compression.

So, use NTFS when the partition on which Windows will reside requires any of the features such as file/folder level security, disk compression, disk quotas, encryption, etc. And use FAT/FAT32 file system when it is necessary to have a computer that will sometimes run an earlier version of Windows and other times run Windows XP.