Below are some softwares I came through google to Password protect / Encrypt Files / Folders Locally or on Portable External drives.
1. Advanced Folder Encryption: http://www.kakasoft.com/folder-encryption/
This is super easy, with lots of features but little costly ($40 approx)
2. BitLocker To Go Reader: http://windows.microsoft.com/en-US/Windows7/what-is-the-bitlocker-to-go-reader
BitLocker To Go Reader allows people running Windows 7 to share their BitLocker-protected data on removable drives, such as USB flash drives or external hard drives, with anyone running Windows 7, Windows Vista, or Windows XP. Its Free probably.
A tutorial for above can be found here.
3. Free Hide Folder: http://www.cleanersoft.com/hidefolder/free_hide_folder.htm
Free Hide Folder is a free computer security software to hide your private folders. Its Free Only.
4. truecrypt: http://www.truecrypt.org/
Free open-source disk encryption software for Windows 7/Vista/XP, Mac OS X, and Linux
5. Wise Folder Hider: http://www.wisecleaner.com/wisefolderhider.html
Free File/Folder Hidden Tool
Hide private files, photos, videos and other personal data from your PC for free.
Seems to be a good fit for some of the best features available as free. It has Flash Drive Hiding Supported (not External Hard Disk)
6. securentfs: http://www.securentfs.com/
SecureNTFS can protect your secret files and folders on any* external drive (But You will need to format your storage drives in NTFS format) by creating invisible, secure password-protected storage
7. WinMend Folder Hidden: http://www.winmend.com/folder-hidden/
WinMend Folder Hidden is a free file/folder hiding tool. While ensuring the absolute system safety, this application can quickly hide files and folders on local partitions and/or on removable devices. The hidden files/folders will be safely hidden whether the drive is accessed in another operating system on the same computer or reinstalled on another computer.
But checkout: some complain it makes folder hidden and cannot open it on any other computer where it is not installed.
8. StorageCrypt: http://www.magic2003.net/index.htm
Lifetime license cost $30 approx.
A video tutorial for Storage Crypt can be found here.
9. Folder Guard: http://www.winability.com/folderguard/
You can use Folder Guard to lock your personal files and folders with passwords, to stop other users from peeking into your records. You can even completely hide your private folders from virtually all applications, and such folders would remain invisible until you enter a valid password. You can also protect sensitive system files from modification or destruction, disable access to the removable drives, restrict access to Control Panel, and more.
Folder Guard can operate in "stealth mode".
Single personal license can cost $40 approx.
10. lock-a-folder: https://code.google.com/p/lock-a-folder/
LocK-A-FoLdeR™ is a lightweight and easy to use program that allows you to hide and lock up any folders on your computer, making them invisible and inaccessible to anyone but yourself. After you create a master password, simply select the folder(s) you want to hide and click a button to make them disappear. To unlock a folder, enter your password and select the folder that you want to unlock.
11. Folder Lock: http://www.newsoftwares.net/folderlock/
Folder Lock lets you password-protect files, folders and drives; encrypt your important files on--the-fly; backup them in real-time; protect USB drives and portable devices; shred files and clean history.
Full version license cost around $40 approx.
Some says as below:
"Bitlocker is great, if you use windows 7... trucrypt sucked the life out of my computer... and had backup and restore issues... bitlocker was great with backups and restores -- yea, did a couple of restores in testing."
