You can reserve a database instance for one or three years with reserved DB instances. When compared to on-demand DB instance price, reserved DB instances will save you a lot of money. Reserved DB instances are a billing discount applied to the use of specific on-demand DB instances in your account. Discounts on reserved DB instances are determined on the instance type and AWS Region.
The typical procedure for working with reserved DB instances is to first learn about accessible reserved DB instance offerings, then acquire a reserved DB instance offering, and then learn about your existing reserved DB instances.
When you buy a reserved DB instance on Amazon RDS, you're buying a guarantee that you'll get a discounted pricing on a specified DB instance type for the term of the reserved DB instance. To use an Amazon RDS reserved DB instance, you must first establish a new DB instance in the same way as you would for an on-demand instance. The specifications of the reserved DB instance must be met by the new DB instance you create. If the new DB instance's parameters match those of an already reserved DB instance for your account, you'll be invoiced at the reserved DB instance's discounted rate. The DB instance is otherwise charged on a per-use basis.
Reserved DB instances come in three flavours: No Upfront, Partial Upfront, and All Upfront, allowing you to tailor your Amazon RDS prices to your needs.
There will be no upfront payment.
This option gives you access to a reserved DB instance without having to pay anything up front. Your No Upfront reserved DB instance charges a lower hourly fee for every hour during the term, regardless of usage, and there is no upfront payment required. This option is only available for one year.
Partial Upfront Payment
This option necessitates the payment of a portion of the reserved DB instance in advance. Regardless of usage, the remaining hours of the term are billed at a discounted hourly rate. This option has taken the place of the previously available Heavy Utilization option.