Windows Inside & Out · Settings & Accounts · Lesson 2 of 5

Microsoft Account or Local Account

Learn what each kind of account gives you and how to keep yours secure.

What a Microsoft account gives you

An account is your own space on the computer, with your files, settings and password. Windows offers two kinds. This module helps you understand both, so you can choose with your eyes open.

A Microsoft account is an online account, the same one you might use for Outlook.com, Xbox or Microsoft 365. You sign in to Windows with its email address. New Windows 11 computers usually ask for one during setup.

Here is what it adds:

• Sync. Some settings, like your theme and saved passwords in Edge, can follow you to another Windows computer.
• OneDrive. OneDrive is Microsoft's online storage. It can keep copies of your Desktop, Documents and Pictures folders on the internet, so a broken laptop doesn't take your files with it.
• Your encryption key backup. Many computers scramble the drive with BitLocker or device encryption, so a thief can't read it. If Windows ever asks for the long recovery key to unlock it, a copy is usually saved in your Microsoft account online. Without that key, the files can be lost for good.
• The Microsoft Store. Apps you buy are tied to your account, so you can install them again on a new computer.
• Find my device and an easy way to reset a forgotten password online.

The trade-off is that more of your activity is linked to an online account. You can review and limit what's shared in Settings > Privacy & security.

To see which kind you use, open Settings > Accounts > Your info. A Microsoft account shows an email address under your name.

Local accounts and keeping yours safe

A local account lives only on this one computer. It has a name and password that are not connected to the internet.

Some people like this. Nothing is synced, and your sign-in doesn't depend on an online service. It can also make sense for a child or a shared family computer. You can add one in Settings > Accounts > Other users.

But you give some things up:

• No automatic OneDrive backup or settings sync.
• If you forget the password, there is no online reset. You rely on security questions you set up earlier.
• An encryption recovery key is not saved online for you. You must save it yourself and keep it somewhere safe.

For most people, a Microsoft account is the safer choice, as long as it's protected well. Your Microsoft account may hold your email, files and keys, so treat it like a bank account.

The best protection is two-step verification. It means signing in needs your password plus a second proof, like a code sent to your phone or a tap in the Microsoft Authenticator app. A stolen password alone is then not enough. Turn it on at account.microsoft.com under Security.

A few more habits help:

• Use a password you don't use anywhere else.
• Keep your recovery phone number and email up to date.
• Never give a sign-in code to someone who calls or messages you. Microsoft won't ask for it.

On a Mac, the matching online account is your Apple Account. It also offers two-factor authentication.