Breaking: AWS is fundamentally changing how their Free Tier works for new customers starting July 15, 2025. Here’s everything you need to know about the new credit-based system and account plans.
What’s Changing on July 15, 2025?
AWS is introducing a completely new Free Tier structure for accounts created after July 15, 2025. The traditional “12 months free” model is being replaced with a credit-based system that offers more flexibility but comes with new limitations.
For complete details, see the official AWS Free Tier documentation.
The Big Picture
- New customers (after July 15, 2025): Get $100 in credits + up to $100 more through activities, plus 30+ always-free services
- Existing customers (before July 15, 2025): Keep the current system with 12-month free tiers, short-term trials, and always-free services
Old vs. New: Side-by-Side Comparison
| Feature | Before July 15, 2025 | After July 15, 2025 |
|---|---|---|
| Structure | 12 months free + Always free + Short-term trials | Credits + Always free + Account plans |
| Initial Benefits | Service-specific limits for 12 months | $100 credits + earn up to $100 more |
| Account Types | Single account type | Free Plan vs. Paid Plan |
| Duration | 12 months for most services | 6 months max or until credits depleted |
| Service Access | All services within limits | Restricted services on Free Plan |
| Account Closure | No automatic closure | Free Plan closes when credits/time expire |
The New Credit System Explained
Initial Credits
- $100 signup credit: Automatically applied to new accounts
- Up to $100 additional credits: Earned by completing activities like:
- Launching an Amazon EC2 instance
- Using Amazon Bedrock playground
- Setting up AWS Budgets
- Creating a Lambda web app
- Creating an Amazon RDS database
Credit Expiration
- Credits expire 12 months after account creation
- Credits apply to eligible services across all AWS regions
- Usage calculated monthly across all regions
Two Account Plans: Free vs. Paid
Free Plan
Best for: Experimentation and proof-of-concepts
What you get:
- $100 signup credit + up to $100 earned credits
- Access to 30+ always-free services
- 6-month maximum duration
- Limited service access (no AWS Marketplace, Reserved Instances, etc.)
- Not eligible for promotional credits/discounts
What happens when it expires:
- Account closes automatically
- 90-day grace period to upgrade to Paid Plan
- All resources deleted after 90 days if not upgraded
Paid Plan
Best for: Production applications and scaling
What you get:
- Same $100 signup credit + up to $100 earned credits
- Access to all AWS services immediately
- Always-free services + short-term trials
- Pay-as-you-go pricing after credits depleted
- Eligible for promotional credits and discounts
- Account never closes when credits run out
Always-Free Services Continue
Both old and new customers retain access to 30+ always-free services, including:
Full list available in our AWS directory
Who Is Affected?
NOT Affected (Keep Current System)
- Existing AWS customers with accounts created before July 15, 2025
- Current 12-month free tier eligibility continues
- All existing always-free services remain
Affected (New System)
- New AWS accounts created on or after July 15, 2025
- Must choose between Free Plan or Paid Plan during signup
- Credit-based system with new limitations
Key Implications for New Users
Advantages of the New System
- Upfront credits: $100-200 in credits vs. service-specific limits
- Flexibility: Use credits across any eligible service
- Learning incentives: Earn credits by completing AWS activities
- Clear timeline: 6-month maximum with clear expiration
Disadvantages
- Shorter duration: 6 months max vs. 12 months for many services
- Account closure: Free Plan accounts close automatically
- Service restrictions: Limited access to certain services on Free Plan
- Credit depletion: Heavy usage can exhaust credits quickly
What Should You Do?
If You’re Planning to Start with AWS
Before July 15, 2025:
- Create your AWS account now to lock in the current 12-month system
- Take advantage of the longer trial periods
- No account closure risk
After July 15, 2025:
- Choose Paid Plan if you’re building production applications
- Choose Free Plan only for short-term experimentation
- Monitor credit usage carefully to avoid account closure
If You’re Already on AWS
- Nothing changes - you keep the current system
- Continue using 12-month free tiers as before
- Always-free services remain unchanged
Tracking Your Usage
New Credit Monitoring Tools
- AWS Management Console: Credit balance and expiration date
- Cost and Usage widget: Real-time credit tracking
- Email alerts: Periodic notifications about credit balance
- Free Tier API: Programmatic access to usage data
Best Practices
- Set up billing alerts early
- Monitor credit burn rate weekly
- Plan for upgrade if approaching limits
- Use always-free services to preserve credits
Migration Strategy
For Free Plan Users
- Track credit usage from day one
- Complete earning activities within 6 months
- Plan upgrade timing before expiration
- Export important data before potential closure
For Paid Plan Users
- Leverage credits for initial development
- Scale confidently knowing account won’t close
- Use promotional credits when available
- Monitor costs as you grow beyond free tier
Frequently Asked Questions
1. Can I switch from Free Plan to Paid Plan?
Yes, you can upgrade anytime. Remaining credits transfer to your Paid Plan account.
2. What happens to my data if my Free Plan expires?
AWS retains your data for 90 days, then permanently deletes it. Upgrade to Paid Plan within 90 days to restore access.
3. Do existing customers get the new credits?
No, existing customers keep their current 12-month free tier system. The new credit system only applies to accounts created after July 15, 2025.
4. Can I download my data after Free Plan expiration?
Yes, but you must upgrade to Paid Plan first, then you can download your data before closing the account.
5. Are always-free services changing?
No, the 30+ always-free services remain the same for both old and new customers.
Bottom Line
The July 15, 2025 changes represent AWS’s biggest Free Tier overhaul ever. While the new credit system offers more flexibility, it comes with shorter durations and potential account closure.
Our recommendation:
- Create your AWS account before July 15, 2025 if you want the traditional 12-month free tier
- Choose Paid Plan if you’re serious about building on AWS after July 15
- Monitor your usage carefully regardless of which system you’re on
The always-free services remain a great way to get started with AWS, but the new credit system changes the game for extended free usage. Plan accordingly.
Stay updated on more cloud provider changes by following our articles and checking our AWS directory for the latest free tier information.
Official AWS Documentation: AWS Free Tier - AWS Billing and Cost Management