16-bit TIFF is good for archival, retains the most of the resolution/tonality of the scanner. If your software has TIFF compression, it retains the same image quality.
JPEG is lossy in any setting because it combines information to do the encoding, but retains information okay even under significant compression. I wouldn't use it for archiving. I had to iterate through the JPEG quality settings until the image was smaller than the 2.44MB limit imposed by NGDF, so a bit of a PITA. There's software that will pre-compute the file size before saving, but that can add to the processing time because the image has to be JPEG-encoded internally to determine the final size.
Okay, back to narrow-gauging...