The needle will always point at the beacon. It's the direction loop on the aerial which apparently rotates in relation to the beacon - but as far as the pilot is concerned it's the compass card on the RBI/RMI. Whatever way you are pointing, it will always swing towards the nose of the aircraft in a turn.
This is the 'dip error'. It's significant if you are turning onto a final track. If you're in a turn and roll out exactly on your inbound track, you will find out you're a couple of degres out when wings level. A bit of a b%gger if you're outside the 5 degrees and you can't descend on the procedure and you're close to your descent point. I used to teach students on light aircraft to use 10 degrees of bank to turn on final track on an NBD procedure. But the aviation authority where I work for a living still insists we fly NDB approaches usung an RMI in 747s turning onto the final track at 25 degrees AoB. In this case you have to delay the roll out by a couple of degrees.
Quadrantal errors are influenced by the structure of the aircraft. Add this to night error, coastline error and the thing's habit of pointing at thunderstorms and you can see what a poor navaid it is.