Edit as PSD or TIFF?

I was reading a book on digital photography and it said one should make changes to images in TIFF format, because it's lossless. Is the native Photoshop format, PSD, also just as good and as safe?

Testing, Testing, One...Two
As I never use 16 bit images I'll have to take Peter's word for it (although all he says is see what happens...). However I do use reasonably large 8 bit images. In fact I'm working on a poster for a client just now. The dimensions are 13200px x 20400px. It contains 54 layers including photographic images, text layers, styled text, smart objects and vector graphics imported from Illustrator.
I just tried three save as... operations. One to Photoshop, one TIFF with LZW and one TIFF with ZIP compression. Each of the save as operations began with a first step of saving composite images and each took about 45 seconds. Then the file saving began...
Photoshop format took only 28 seconds to save the file... 840.2 mb.
TIFF LZW took 2:10 to save the file... 374.2 mb.
TIFF ZIP took 21:04 to save the file... 364.8 mb.
I'll use the TIFF LZW when I don't specifically need the PSD format.

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    Message title was edited by: Brett N

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    Message was edited by: station_two

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