Microsoft 365 gives you both OneDrive and SharePoint, and at first glance they can look like two places to store the same files.
They are related, but they serve different purposes.
OneDrive is primarily your personal workspace
OneDrive is the place for files you are working on yourself or files that are not yet part of a broader team workspace.
You can still share files from OneDrive with other people, but the files remain associated with your OneDrive.
SharePoint is built for shared organizational content
SharePoint is designed for content that belongs to a team, department, project, or organization.
It provides shared document libraries, permissions, sites, metadata, and other collaboration features.
A simple rule
Use OneDrive when the file is primarily yours.
Use SharePoint when the file belongs to the team or organization.
What about Microsoft Teams?
Files shared in Microsoft Teams channels are generally stored in the SharePoint site connected to that team.
This is why Teams and SharePoint are much more closely connected than many users realize.
Bottom line
If you’re keeping a working document for yourself, OneDrive usually makes sense.
If a document should survive staff changes, be managed by a team, or become part of a shared information structure, SharePoint is usually the better home.