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If you paid into an ISA insurance policy before 5 April 2005, you can continue paying into that policy after 5 April 2005. But if you also subscribe to either a Mini cash or a Mini stocks and shares ISA component you may have to rearrange your savings.

You can take your money out at any time, without losing any tax benefits you have already built up. However, some ISAs may run for a fixed period or require notice of withdrawal and you may lose some interest or a bonus if you withdraw early. In some cases, there may also be a penalty if you surrender an ISA life insurance policy early.

If you die your ISA will end on the date of your death. There will be no tax to pay on income or capital gains up to that date, but your personal representatives will have to account for tax on any income or gains arising after your death. The ISA manager will either sell the investments and pay the proceeds to your personal representatives (or a beneficiary of your estate), or transfer the investments directly into their hands. The terms and conditions of the ISA may specify which it will be.

To open an ISA you have to be aged 18 or over or for cash ISAs aged 16 or over. You also have to be resident and ordinarily resident in the UK for tax purposes (ask your Inland Revenue office if you are in any doubt about this).

The situation is the same if you have shares that you have inherited. You are not able to transfer them into an ISA.

You can get an ISA by going to an ISA manager. These include banks, building societies, National Savings and Investments, some supermarkets and retailers, friendly societies, insurance companies, unit and investment trust companies, financial advisers, fund supermarkets and stockbrokers. Your ISA manager will look after your account for you.

There are two ways - called 'components' - in which your money can be invested: ‘cash’ and ‘stocks and shares’ (both of which can include some specially designed life insurance policies).

With stocks and shares or life insurance, you may not get back all the money you put in, particularly if you withdraw during the early years of an investment.

The ISA scheme provides different ways of saving to meet people's different needs. You can plan for the short term, or put your money away for much longer.

If you take money out, any that you put back later will count against your ISA annual subscription limit in the year that you re-invest your money.