File Format & Compatibility

How to Save Microsoft 365 Excel Files to a Local Hard Drive

John WilsonJohn Wilson Nov 4, 2026 870 views

Question details

The user needs to know how to save Microsoft 365 Excel files to local storage devices like hard drives or USBs instead of the default OneDrive cloud storage, while maintaining compatibility with older Office versions.

How to Save Microsoft 365 Excel Files to a Local Hard Drive
Product
Microsoft Excel 365
Device & OS
not provided
Scenario
Bypassing the default OneDrive cloud storage prompt to save an Excel workbook locally to a PC or external storage.
Observed behavior
Microsoft 365 automatically sets OneDrive as the default save location, requiring the user to manually select local folders or external drives.
Before you start

If you plan to save your files to an external USB drive, ensure the drive is securely connected to your computer and has sufficient free storage space before proceeding.

Solution 1Recommended

Use 'Save As' to Save to Your Computer or USB Drive

This method allows you to quickly choose a local folder or an external USB drive for the current Excel workbook.

By default, Microsoft 365 attempts to save files to your connected OneDrive account. You can bypass this by using the 'Save As' menu to browse your local device directories.

1
Open the File menu

Click on the 'File' tab located in the top-left corner of the Excel application window.

2
Select Save As

Click on 'Save As' from the left-hand navigation pane.

3
Choose This PC or Browse

Click on 'This PC' to view your recent local folders, or click 'Browse' to open the traditional Windows File Explorer dialog.

4
Select the destination and save

Navigate to your desired local hard drive folder or select your connected USB drive. Enter a file name and click the 'Save' button.

Use 'Save As' to Save to Your Computer or USB Drive
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Frequently Asked Questions

Can Microsoft 365 and Office 2021 open files created in Office 2016?

Yes, Microsoft 365 and Office 2021 are fully backwards compatible. You can seamlessly open, edit, and save Word, Excel, and PowerPoint files that were originally created in Office 2016.

How do I open older Office 2003 formats (.xls) in modern Excel?

Microsoft 365 can open Office 2003 formats, but they will open in Compatibility Mode. To access modern features, click on 'File', select 'Info', and click the 'Convert' button to update the document to the current .xlsx format.

Why is OneDrive the default save location in Microsoft 365?

Microsoft prioritizes OneDrive as the default to enable cloud-based features like real-time AutoSave, file versioning, and easy sharing. You must manually override this in the 'Save' options if you prefer local storage.