"Free" version of Microsoft 365 not really free

The web-based versions of Excel, Outlook, PowerPoint and Word are free to use for everyone, but they offer limited capabilities (for an overview, see https://support.microsoft.com/en-us/topic/3e863ce3-e82c-4211-8f97-5b33c36c55f8).

Using the full version of Office requires that you get a subscription or purchase a perpetual (one-time payment) license. A perpetual license such as Office Home & Student will be cheaper; the downside is that it is only licensed for one user and one device. For more, have look at https://www.microsoft.com/en-us/microsoft-365/buy/compare-all-microsoft-365-products#.

If you cancel an existing subscription, you can still continue to use the e-mail address (access it online) and you can use the associated OneDrive storage. Remember that the free storage is smaller, though.

Thank you for such a quick response. I noted in your response above that you listed Outlook twice and I assume you meant for one of those to read Word. Ragardless, I am only one person and only one device and find I have no need for anything but Word and Outlook. I also have OneDrive (I'm pretty sure). I also don't need the more sophisticated features of Word like I did when I was working. I bought my Microsoft package from the place where I got my new laptop and the guy told me I'd have to pay yearly for that. But when I got the reminder from Microsoft that my year subscription needed to be renewed, that was when I noticed there was a "free" version available and tried to sign up but the app said my email was already in use. I didn't want to create a new one.

So, now I'm a little bit confused . . . about my options. I don't mind paying for a perpetual license with its subsequent limitations if it's a one-time fee . . . but I am troubled by having to pay a yearly fee to use what I already bought. I think I get the difference noted in the link above between the web-based version and the perpetual license that has a one-time fee. **** (Full disclosure here - I really don't get the difference.) Is there any way you can clarify for me the distinctions??? Thanks!!! :-)

Here is the screen shot I was referring to . . .

Your heading says "Windows 365", but your question is in the "Microsoft / Office 365" forum. https://www.microsoft.com/en-us/windows-365 .

"Windows 365" is a business offering. It is NOT free.

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Please give us a link to the product you are referring to.

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Hotmail accounts can only be used for consumer products. After your subscription ends, your email account remains. Free Hotmail?Outlook.com email accounts are granted 5GB of onedrive space "free". if you have an Office 365 subscription you are granted an additional 1TB of OneDrive. When your subscription ends, the 1TB is taken away. If you have files that use more than your free allocation of OneDrive space, you will lose any files not in the 5GB allocation.

Hello Jane,

Welcome to Microsoft Community and thank you for sharing your concern with us today. 

As per your description shared, I would like to confirm whether you are looking for the free version of Microsoft 365 or Windows OS? If you are wondering about the free version of Microsoft 365, you can refer to the below articles:

Free Microsoft Office 365 for Schools & Students | Microsoft Education

If your school is not registered. we need to register it first and verify it with Microsoft Phone support, reference: Office 365 Education (microsoft.com)

If you are not looking for Microsoft 365 Services, I would like to request you share some screenshots of the free version of Windows 365 for better understanding.

Best Regards,