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1. What’s New?

As of July 15, 2025, Amazon Web Services (AWS) has retired the 12-month Free Tier for new accounts. In its place, AWS now offers a credit-based Free Tier system, where new users receive:

    • $100 in AWS credits upon signup, and

    • Up to $100 more in bonus credits for completing hands-on activities.

This means any AWS account created from July 15, 2025 onward is no longer eligible for the traditional 12-month trial and is instead enrolled in this new credit system.

2. What Are the Key Differences?

FeatureNew Credit-Based Free Tier (Post-July 15, 2025)Legacy 12-Month Free Tier (Pre-July 15, 2025)
Credits$100 upfront + up to $100 earnedNone – fixed free usage quotas
DurationUp to 6 months or until credits run out12 months from account creation
Service AccessAlways-free services + limited paid services100+ services with free tier usage
Account OptionsFree Plan or Paid PlanSingle-tier trial experience
Expiration HandlingFree Plan auto-closes unless upgradedServices continue and billed normally

3. Two Plan Types for New Accounts

🔹 Free Plan (for learners and testers)

    • $100 initial credit, plus up to $100 earned

    • Access to always-free services and select trial services

    • Automatically expires after 6 months or when credits run out

    • AWS deactivates the account 90 days later unless upgraded to a Paid Plan

    • No access to Reserved Instances, AWS Marketplace, or advanced billing options

🔹 Paid Plan (for builders and businesses)

    • Same $100 + $100 credit benefits

    • Full access to all AWS services, including EC2, RDS, Marketplace, and more

    • Once credits are used or expire, pay-as-you-go billing begins

    • No automatic account closure

4. Why the Change?

AWS says this change makes the Free Tier:

    • More flexible, thanks to general-use credits rather than service-specific quotas

    • More educational, encouraging users to explore and earn additional credits through tutorials and activities

    • More predictable, since users have a clear dollar limit to manage, rather than tracking multiple service caps

However, this also means:

    • Shorter trial periods

    • More active usage tracking and budgeting are needed

    • No more passive 12-month buffer for experimentation

5. What If I Already Had an Account?

    • If your AWS account was created before July 15, 2025, you still retain the 12-month Free Tier benefits as originally offered

    • If you signed up on or after July 15, 2025, you are automatically part of the new credit-based system

    • You can no longer opt into the old 12-month Free Tier

6. How to Track Your Free Usage

To avoid unexpected charges or premature plan expiry, AWS recommends:

    • Using the Free Tier dashboard in the AWS Console

    • Enabling billing alerts

    • Setting budgets and using Cost Explorer

    • Checking your credit expiration date

    • Following recommended tutorials and hands-on labs to earn bonus credits

7. After Credits or Trial Ends

If you’re on the Free Plan:

    • Your account will automatically expire once 6 months or $100+ credits are used

    • AWS keeps your data for 90 days

    • You can upgrade to Paid Plan anytime during that window to retain access

If you’re on the Paid Plan:

    • Your account remains active

    • After credits run out, you are charged under the standard pay-as-you-go model

8. Key Takeaways

âś… New accounts now get $100 + $100 bonus credits instead of 12 months
âś… You have up to 6 months to use them
âś… Always-free services like Lambda, S3, DynamoDB, and CloudWatch still apply
âś… After credits expire, you must either upgrade or stop usage
❌ You can no longer sign up for the 12-month Free Tier

9. Final Thoughts

The new AWS Free Tier system is credit-based, shorter, and more focused on guided learning and intentional usage. While the flexibility of using credits across any service is a welcome update, it requires more proactive tracking and planning.

If you’re just now exploring AWS:

    • Start with the Free Plan if you’re learning or experimenting

    • Go for the Paid Plan if you’re building production apps or want longer-term access

Both paths still offer value—just in a more structured, credit-driven format.

đź”— Learn more at the official AWS Free Tier page

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