Adobe Photoshop CS6 User Manual page 311

TIFF Saves copies of the camera raw files as TIFF (Tagged-ImageFile Format) files. Specify whether to apply no compression, or LZW or
ZIP file compression. TIFF is a flexible bitmap image format supported by virtually all paint, image-editing, and page-layout applications.
TIFF provides greater compression and compatibility with other applications than does PSD format.
Photoshop Saves copies of the camera raw files in the PSD file format. You can specify whether to preserve cropped pixel data in the PSD
file.
4. Click Save.
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