TXT is a plain text file format that contains unformatted text. It is widely used for storing simple data and documentation, as it can be opened by almost any text editor. TXT files are lightweight and ideal for basic text notes, configuration files, and logs.
RTF is a rich text file format that allows for basic document formatting, including text styles, fonts, and paragraph alignment. It is widely compatible across different platforms and applications. RTF files are ideal for sharing documents that need to maintain formatting but do not require advanced features like those found in DOCX or PDF files.