Traditional IRA Accounts allow you to defer paying tax on the amount you invest, meaning you earn interest on a marginally higher principal. Plus you are not paying tax every year on your interest earnings. The compouning effect of the tax break and the higher principal really adds up!
However, with a traditional IRA Account you are betting that when you retire you will be in a lower tax bracket than you are now. (If you think tax rates will be higher when you retire learn about a Roth IRA here.)
This IRA calculator shows you the benefits of an IRA over a taxable savings account.