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If it is a layered file and you want to keep the layers (this type of file is only useable with photoshop) to either just save it as layers or so you can continue working on it later, .psd  but if you want to save it as a image from the print the web or other viewing, .jpeg is a good quality not such a size munching file type.  Now .tiff is more complex with size, and .bmp is also a large size one.  I prefer .psd for saving the work area and the layers, and .jpeg for saving for a reason, like showing on the web or putting in a presentation.