When does a tracker start tracking ........

inearlygaveup

The Nationwide 1 Year Tracker – as I understand it starts its life at the advertised rate, currently 6.25% for investing £1-£9,999 and moves up/down (tracks) the BOE rates.

When does it start tracking given that the summary box says “Effective from 17 October 2008 “

If I open one this week, they can subject to notice drop it to the current BOE rate.
Or have I missed something

Lansdowne

"Interest rate is guaranteed to track the Bank of England Base Rate. Any rate changes will take place within a month of any Bank of England announcement."
So given that the rate was set on October 17th, it has not yet tracked November's 1.5% BOE reduction. Presumably that will happen on Dec. 1st or thereabouts.

Trying_to_be_good

If it's a tracker product, it will drop by 1.5 percentage points, i.e. to 4.75% - maintaining the +1.75 percentage points differential to the base rate. It won't drop to the actual base rate.

They normally change the rate on the first working day of the month following a rate change, so 1 Dec it will probably change to the lower 4.75% rate.

inearlygaveup

Thanks for your replies, I disagree with how they are still advertising this product as it is clearly only 6.25% for a number of days.
Obviously a marketing ploy.