With the new unified Inbox option in Outlook that groups your Inboxes, Drafts, Deleted Items and Junk folders, some users are confused over mail that is downloaded to their computer or mail that is on the server. More info on the unified Inbox.
What are folders “On My Computer”?
Messages that are in folders under “On My Computer” are stored on your computer. Exchange users often archive messages from their Exchange account to “On My . . .
Continue Reading: Basics: Folders On My Computer