Which is better??

Does .rar/.zip file requires less space than original file??
Will it requires more time to open .rar/.zip file??

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.zip file requires time to open so keeping original file is better in some cases…
But in other case keep .zip files

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Rar does better compression by default. Depends on the file type also.
Jpeg is hardly noticeably compressed, while files with textual data is.