Final answer:
A Certificate of Deposit (CD) offers higher interest rates than regular savings accounts but incurs penalties for early withdrawals.
Explanation:
One traditional way to save money in a bank is by utilizing a Certificate of Deposit (CD). With a CD, you agree to deposit a certain amount for a specific period, and in return, the bank offers a higher interest rate compared to a regular savings account. However, withdrawing money before the term ends may result in a substantial penalty.
Learn more about savings accounts and certificates of deposit here:
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