Study guide
Technical reference and lesson notes
Purpose of This Lesson
This lesson explains the current AWS account options introduced in July 2025 and walks through creating an AWS account for hands-on learning. The main goal is to choose the plan that matches your access and billing-risk requirements, understand how credits and expiration work, and establish safe operational habits before deploying resources.
Key Concepts
AWS Free Plan and Paid Plan
New AWS customers choose between two account plans:
- Free Plan: Provides access to always-free usage, short-term trial offers, and selected AWS services and features. It is designed to limit unexpected charges.
- Paid Plan: Provides access to all AWS services and features. After available credits are exhausted, normal service charges are applied to the payment method on file.
Both plans provide $100 in credits at signup. AWS may allow customers to earn an additional $100 in credits by completing selected actions in the AWS Management Console, for a potential total of $200. These credits are available to new customers and are provided only once according to AWS.
Free Plan Safety Behavior
The Free Plan does not incur charges during usage. If the credits are consumed or the six-month period ends, whichever happens first, the account expires and is closed rather than continuing to generate charges. The account can be upgraded to the Paid Plan within a 90-day grace period after expiration.
The Free Plan is not unlimited access to AWS. Some services, features, and resource types are restricted because they could consume credits quickly. For example, EC2 access may be limited to selected instance types.
Paid Plan Behavior
The Paid Plan remains active and permits access to all AWS services. Credits are applied to eligible consumption first, but usage beyond the available credit balance is charged to the payment method on file. This makes the Paid Plan more flexible, but it requires active cost monitoring and resource cleanup.
Root User and IAM User
The account created during initial signup is the root user account. It is identified by the signup email address and root-user password.
An IAM user is a separate identity created later through AWS Identity and Access Management. The normal IAM login requires an AWS account ID or account alias plus an IAM username and password. Until an IAM user exists, sign in through the root user email option.
Account ID, Account Name, and Alias
AWS assigns an account ID, which is a long numeric identifier. The account name and account alias are friendlier identifiers that are easier to recognize.
The alias is also used to construct a sign-in URL. Account names and aliases must be unique across AWS. A consistent naming scheme for the account name, email alias, and account alias can make multiple learning accounts easier to distinguish.
Account Plans, Credits, and Lifecycle Details
Free Plan Versus Paid Plan
| Capability or behavior | Free Plan | Paid Plan |
|---|---|---|
| Signup credits | $100, with up to another $100 potentially earned through console actions | Same credit opportunity |
| Always-free services and short-term trials | Available | Available |
| Service access | Selected services and features | All AWS services and features |
| Charges after credits are exhausted | No usage charges; account expires or closes | Additional usage is charged |
| Normal lifecycle | Expires after six months or when credits are used, whichever comes first | Remains active while the account is maintained |
| Suitable for | Beginners and short-term, lower-risk learning | Longer-term projects, broader labs, and advanced services |
Credit Expiration and Upgrading
Free-tier credits expire 12 months from the date the account was opened. However, a Free Plan account is automatically shut down after six months or when its credits are consumed, whichever occurs first. Upgrading to the Paid Plan can preserve the remaining credits for longer use, subject to AWS’s applicable terms.
Be especially careful with automatic plan conversion. If the Free Plan is converted to the Paid Plan through AWS Organizations, AWS Partner programs, or other enterprise programs, remaining credits expire and are not applied to Paid Plan usage. If you intend to use AWS Organizations, manually upgrade the account before creating or joining the organization so the remaining credits carry over to future bills.
Account Signup Requirements
Prepare the following before starting:
- A unique email address that has not already been used to create another AWS account
- A credit card, even when selecting the Free Plan
- A unique AWS account name
- A unique account alias
- A phone capable of receiving an SMS verification code
- A strong root-user password
Gmail dynamic aliases, such as name+aws-lab@example.com, may help create distinct account email addresses while delivering messages to one inbox. The address must still be unique to AWS.
Signup Workflow
- Open the AWS Free Tier page and select Create a free tier account.
- Enter the root-user email address and account name.
- Select Verify email address, retrieve the verification code, and confirm it.
- Create a strong root-user password.
- Choose the Free Plan or Paid Plan.
- Select the personal account type for individual learning and enter the requested contact information.
- Accept the terms and conditions.
- Enter and verify the payment-card information.
- Confirm the phone number using the SMS verification code.
- Wait for AWS account activation and the activation email.
- Open the AWS Management Console and verify the selected Region.
Region Selection
The console may initially open in a region based on location or AWS’s default behavior. Course activities commonly use US East (N. Virginia), also known as us-east-1, but the appropriate region depends on the exercise. Always verify the active Region before creating resources because resources and many settings are regional.
Exam- or Assessment-Relevant Takeaways
This account-creation lab is primarily operational, but it supports CloudOps assessment scenarios involving cost control, account access, and service availability:
- Select the Free Plan when avoiding unexpected charges is more important than unrestricted service access.
- Select the Paid Plan when a lab needs services or features excluded from the Free Plan, or when the account must remain usable beyond six months.
- Understand that credits are not the same as unlimited free usage; charges, access restrictions, and expiration depend on the selected plan.
- Recognize that a Free Plan account closes after six months or credit exhaustion, whichever comes first.
- Before using AWS Organizations with a Free Plan account, manually upgrade if preserving remaining credits is important.
- Distinguish the root-user login flow from the IAM-user login flow.
- Treat billing alarms, resource termination, and cost monitoring as operational responsibilities on the Paid Plan.
Tool / Feature Decision Guide
| Requirement or situation | Recommended choice | Reason |
|---|---|---|
| New to AWS and concerned about surprise charges | Free Plan | Usage does not generate charges after credits are consumed; the account expires instead. |
| Short course using only supported services | Free Plan | Provides a time-limited, lower-risk environment. |
| Need all AWS services or restricted features such as some advanced lab components | Paid Plan | Provides unrestricted service access, subject to normal billing. |
| Need to continue using the account beyond six months | Paid Plan | The Free Plan expires after six months or credit exhaustion. |
| Need to use AWS Organizations while preserving credits | Manually upgrade before using Organizations | Automatic conversion through Organizations causes remaining credits to expire. |
| Running a Paid Plan account | Billing alarms plus resource cleanup | Alarms provide notification, while shutting down or deleting unused resources limits consumption. |
| First login immediately after signup | Root-user email option | Signup creates the root user; an IAM user has not yet been created. |
| Login after an IAM user is created | Account ID or alias plus IAM credentials | IAM users use the IAM login path rather than the root-email option. |
Common Traps / Misconceptions
- The Free Plan is not the same as unlimited free access. It limits the services and features available.
- The Free Plan is not permanent. It expires after six months or when the credits are exhausted, whichever comes first.
- A payment card is still required for the Free Plan. It remains on file for possible future conversion to the Paid Plan.
- Credits are not guaranteed to last 12 months on a Free Plan. Although credits expire 12 months after account creation, the Free Plan itself can close after six months.
- Creating an AWS Organization can affect credits. Automatic conversion to the Paid Plan through Organizations causes remaining credits to expire.
- The root user is not an IAM user. The initial account login uses the root email address; the IAM login requires an IAM identity.
- The account alias is not the same as the numeric account ID. The alias is a friendly identifier, while the account ID is a long number.
- Changing regions does not move existing regional resources. Verify the selected Region before performing a lab.
- Credits do not replace cost discipline on the Paid Plan. Unused resources can continue consuming credits and then generate charges.
Real-World Engineer / Analyst Notes
- Use the Free Plan as a controlled learning environment only when its service restrictions fit the lab requirements.
- Before starting a lab, identify whether it needs a restricted service, a particular resource type, a domain registration, or AWS Organizations. These requirements may force the use of the Paid Plan.
- On a Paid Plan, establish a billing alarm early and choose a notification threshold appropriate to the lab. Billing alarms notify you; they do not automatically stop every resource.
- Follow each lab’s cleanup instructions, but independently verify that instances, databases, storage, networking components, and other billable resources are no longer running.
- Keep the root user for account-level tasks and use IAM identities for normal operational work once they are configured.
- Record the account name, alias, Region, and purpose of each learning account. Consistent naming reduces mistakes when multiple AWS accounts are involved.
- Check the AWS Free Tier pages and billing documentation before relying on a specific service or limit, because plan availability and promotional terms can change.
Quick Reference Summary
- AWS currently offers a Free Plan and a Paid Plan for new customers.
- Both plans provide $100 at signup and may provide another $100 through qualifying console actions.
- The Free Plan exposes selected services and features and does not charge after credits are exhausted; it expires after six months or credit exhaustion.
- The Paid Plan exposes all AWS services and charges usage beyond the available credits.
- Free Plan accounts can be upgraded within a 90-day grace period after expiration.
- Automatic conversion through AWS Organizations can forfeit remaining credits; manually upgrade first when credit preservation matters.
- Signup requires a unique email, account name, alias, payment card, phone verification, and root password.
- Initial access uses the root-user email. IAM login becomes available after an IAM user is created.
- Verify the AWS Region before creating resources, and use billing alarms and cleanup practices on Paid Plan accounts.
Flashcards
Q: A new learner wants to avoid any possibility of a surprise AWS bill and only needs services supported by the restricted account option. Which plan should they choose?
A: Choose the Free Plan. It limits service access and closes the account when credits are consumed or the six-month period ends instead of continuing to charge usage.
Q: When is the Paid Plan preferable to the Free Plan for a hands-on course?
A: Use the Paid Plan when the course needs services or features excluded from the Free Plan, requires broader resource choices, or continues beyond six months.
Q: What happens when a Free Plan account reaches six months before using all its credits?
A: The account expires and is shut down because the six-month limit is reached. Remaining credits do not make the Free Plan active beyond that limit.
Q: What happens to a Free Plan account when its credits are exhausted before six months?
A: The account closes rather than incurring usage charges. The owner can upgrade to a Paid Plan within the 90-day grace period after expiration.
Q: How do the Free Plan and Paid Plan differ after the available credits are consumed?
A: The Free Plan does not incur additional usage charges and expires, while the Paid Plan continues operating and bills the payment method for additional usage.
Q: A learner plans to create an AWS Organization and has unused Free Plan credits. What should happen first if preserving those credits is important?
A: Manually upgrade the account to the Paid Plan before using AWS Organizations. Automatic conversion through Organizations causes remaining credits to expire.
Q: What is the distinction between AWS account ID, account name, and account alias?
A: The account ID is a long numeric identifier. The account name and alias are friendly identifiers, and the alias can be used in the console sign-in URL.
Q: Why can a payment card be required when selecting the Free Plan?
A: AWS keeps a payment method on file for billing if the account is switched to the Paid Plan. The card requirement does not mean that Free Plan usage automatically incurs charges.
Q: Immediately after signup, which login option should be used if no IAM user has been created?
A: Use the root-user email sign-in option with the email address and password created during signup. The IAM login requires an IAM username and does not apply yet.
Q: What information is needed to create an AWS account besides personal contact details?
A: The signup requires a unique email address, unique account name and alias, payment card, phone for SMS verification, and a strong root-user password.
Q: Why should the active AWS Region be checked before beginning a lab?
A: Many AWS resources and settings are regional. Creating a resource in the wrong Region can make it appear missing from the expected console view and can affect the lab’s workflow.
Q: What is the relationship between Free Plan credits and the 12-month credit expiration period?
A: Credits expire 12 months after the account was opened, but a Free Plan account can close sooner because the plan expires after six months or credit exhaustion, whichever comes first.
Q: A learner is using the Paid Plan for a temporary lab. Which two operational controls should be established?
A: Configure a billing alarm and clean up or terminate billable resources at the end of the lab. The alarm provides warning, while cleanup prevents continued consumption.
Practice Questions
Question 1
A student selects the Free Plan and uses all available credits after two months. What is the expected result?
A. AWS automatically converts the account to the Paid Plan and bills the card.
B. The account remains active with unlimited access to always-free services only.
C. The account expires or closes without additional usage charges, with an upgrade option during the grace period.
D. AWS extends the Free Plan to 12 months because credits were used early.
Correct answer: C
The Free Plan closes when credits are exhausted or six months elapse, whichever comes first. It does not continue charging the payment card automatically.
Question 2
A learner has $40 in unused Free Plan credits and creates an AWS Organization before changing the account plan manually. What is the key risk?
A. The account’s root user is permanently deleted.
B. The remaining credits expire during automatic conversion to the Paid Plan.
C. The account becomes limited to one AWS Region.
D. The account is prevented from using IAM.
Correct answer: B
Conversion through AWS Organizations can cause remaining Free Plan credits to expire. Manually upgrading first is the recommended way to preserve them for future Paid Plan usage.
Question 3
A lab requires an AWS service or feature that is not available under the Free Plan and must continue for more than six months. Which plan best fits the requirement?
A. Free Plan, because credits last 12 months.
B. Free Plan, because all AWS services are available until credits are used.
C. Paid Plan, because it provides all service access and does not have the Free Plan’s six-month expiration.
D. Either plan, because service access is identical.
Correct answer: C
The Paid Plan is appropriate when unrestricted service access or longer-term account use is required. The Free Plan has both access restrictions and a six-month lifecycle limit.
Question 4
A user signs out immediately after creating an AWS account. The console asks for an account ID or alias and an IAM username. No IAM user exists yet. What should the user do?
A. Enter the root email address in the IAM username field.
B. Create an AWS Organization before logging in.
C. Select the root-user email sign-in option and use the signup credentials.
D. Wait for the account’s 12-month credit period to begin.
Correct answer: C
Initial signup creates the root user, not an IAM user. The root-user email option is the correct login path until an IAM identity is created.
Question 5
A team uses the Paid Plan for a lab and wants to reduce the chance of an unexpectedly high bill. Which approach is most appropriate?
A. Rely only on the signup credits.
B. Set a billing alarm and verify that temporary resources are terminated after the lab.
C. Use the root user for every task so all activity is visible.
D. Avoid selecting a Region until the lab is complete.
Correct answer: B
Paid Plan usage can continue beyond the credit balance and generate charges. Billing alarms provide notification, while resource cleanup limits ongoing consumption.
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Learn how to choose and create an AWS Free Plan or Paid Plan account, understand credits and expiration, avoid unexpected charges, and complete the initial login setup safely.
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AWS Certified CloudOps Engineer, AWS account setup, AWS Free Plan, AWS Paid Plan, AWS Free Tier, AWS billing, AWS credits, AWS Organizations, IAM, AWS regions, cost management