Microsoft recommends that you always use encryption at the folder level to encrypt all the files within a folder. This is important for the sake of security because many applications create temporary files that otherwise wouldn't be encrypted.

1. Right-click on folder you want to encrypt and select the Properties option.

2. A Properties dialog of selected folder appears. Click over the Advance button

3. An Advance Attributes dialog box will appears. Click over check box beside the Encrypt Contents to Secure data option

4. Click over the OK button.

5. Folder's Properties dialog box re-appears. Click over the Apply button.

6. A Confirm Attributes Changes dialog box appears. Click on the radio button besides the Apply changes to this folder, subfolder and files option.

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7. Click over the OK button.

8. When the folder has been encrypted it will turn to green and all the files and folder it contains will also have green names (encrypted). When encrypted folder is copied or moved anywhere else, the green color of a file/folder name means encryption has been preserved and if file name is turn to black then it means the file has been decrypted.

9. After you have chosen a folder as being encrypted, any files that you save in the folder will be automatically encrypted. When you open the files, they will be automatically decrypted. If you compress the folder then the encryption will automatically removed.