AWS Free Tier account NEW update

☁️🚀 You can use AWS Free Tier to explore AWS services without cost commitments. Starting from July 15, if you are new to AWS and create an account after this date, you receive USD $100 in credits immediately upon sign-up. You can also earn up to an additional USD $100 in credits by completing activities. In addition, you have access to over 30 always free AWS services that offer monthly free usage limits. This new structure applies only to accounts created after July 15.

Free plan is ideal for customers experimenting with AWS services and building proof of concepts at no cost for up to six months. Free account plans don't have access to certain AWS services that would rapidly consume the entire AWS Free Tier credit amount, or hardware purchases.

Paid plan is for customers who are ready to build production applications that scale beyond the initial credit amount.

🎁 What’s changing:

  • $100 in promotional credits granted immediately at sign-up, with the opportunity to earn an additional $100 by completing AWS labs, tutorials, or training modules.

  • Access to 30+ Always Free services (Lambda, S3, CloudWatch, DynamoDB, etc.) with usage caps applied monthly.

  • The Free Plan is limited to 6 months or until credits run out, whichever comes first.

  • If you created an account before July 15, you’re still on the old Free Tier structure — 12 months of usage plus Always Free.

Effects on different audiences:

Startups :

✅ Advantages:

  • Start with up to $200 of prepaid AWS credits—cutting initial infrastructure costs.

  • Earn extra credits by using educational resources—great for bootstrapping.

⚠ Risks:

  • The 6-month time limit forces planning ahead; unused resources get shut down automatically.

  • Once closed, you'll lose resource access unless you upgrade fast.

Developers :

✅ Advantages:

  • Prevent “bill shock” by setting a hard stop at 6 months.

  • Opportunity to experiment without worrying about costs.

⚠ Risks:

  • Projects spanning beyond 6 months need migration planning.

  • Missing credit-earning activities could significantly reduce uptime.

Cloud learners/students :

✅ Advantages:

  • Gamified learning makes it easy to top up free budget.

  • Safe buffer to learn essential services without accidental billing.

⚠ Risks:

  • The clock is ticking—must finish labs/tutorials within 6 months.

  • Always‑Free limits still apply; exceeding usage means charges from credits.

💸 Strategies to avoid unexpected charges:

  • Enable billing alerts & AWS Budgets — set zero‑spend budgets to catch usage spikes.

  • Track your credit balance and expiry via the Console’s Cost & Usage widget or the billing dashboard.

  • Opt into usage notifications at 85% of free services—automatic email alerts help you stay ahead.

  • Work with Always Free limits — know your thresholds and scale carefully.

  • Plan resource cleanup or paid migration before 6 months end to avoid losing work.

  • Complete credit-earning tasks early—labs, tutorials, and basic sign-up activities.

🧠 My take:

AWS is finding a balance between risk and engagement by encouraging learning and protecting users from unexpected costs. The gamified learning approach guides users through education, linking usage to skill development. Offering "Free" and "Paid" plan options helps users decide between quick demos and long-term setups. Automatic shutdowns make account management easier by simplifying cleanup and reducing clutter.

Overall, AWS is leaning into a hands-on, guided, and safer onboarding experience that benefits learners and protects them from unexpected cloud bills.

This is a smart move by AWS—it encourages exploration and hands-on learning but keeps users from overcommitting. As long as startups, devs, and learners plan carefully around the 6-month clock and credit budget, this is a big win. If you have any specific use-case (like building an ML pipeline or a startup MVP), I can help map out an optimized strategy—just let me know!

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Written by

BHARAT SURYA JITHUGA
BHARAT SURYA JITHUGA