How to Purchase a Reserved Instance for AWS RDS (Step by Step)

Hey there! đź‘‹

Today I want to show you how I purchase a Reserved Instance for my database in AWS RDS. It helps me save money on my server costs for Ghostboard. I will walk you through the exact steps I follow.

đź’ˇ If you prefer video, you can watch my video tutorial version here: https://youtu.be/X8V_snV65bk

Step 1: Go to AWS RDS

  • First, log in to your AWS account and go to RDS, the Relational Database Service.
  • In the left menu, click on Reserved instances.
  • Then click the orange Purchase Reserved DB Instance button.

Step 2: Choose Your Database Engine

  • You need to select the database engine you’re using — like MySQL, PostgreSQL, or Aurora. In my case, I use RDS PostgreSQL for Ghostboard.

Step 3: Choose the Instance Type

  • Here you select the class of instance, which is the size and type of the server.
  • For me, I go with t4g.small, which is a burstable instance using an ARM CPU.

Step 4: Deployment Option

  • Now choose your deployment option: Single-AZ or Multi-AZ.
  • I use Multi-AZ for higher availability, so Ghostboard can stay online even if one zone has a problem.

Step 5: Reservation Term

  • Decide how long you want the reservation for: 1 year or 3 years.
  • I usually pick 1 year, and then review if I need a bigger or smaller instance at the end.

Step 6: Payment Option

You have 3 choices here:

  • All Upfront – pay everything now, get the biggest discount.
  • Partial Upfront – pay a part now, rest over time.
  • No Upfront – pay monthly, but smaller discount.

I choose All Upfront, so I don’t pay monthly for the instance.
(Note: You still pay for storage and backups separately.)

⚠️ Important: Even if you delete your database later, you still pay for the full reserved period.

Step 7: Instance Count (Be Careful!)

  • If you use Multi-AZ, you only need to select 1 reserved instance. This already includes the failover replica in another zone.
  • People often make a mistake here and select more than needed.
  • This setting is not about physical servers — it’s about how many databases you want to reserve.

Step 8: Add a Name (Optional)

  • You can add a name or tag to identify this reservation.
    If you don’t, AWS will assign a default name (something like R-I-20250512...).
  • Final Step: Confirm & Purchase
  • You will see a summary with the total price.
  • Double-check everything and click the orange Purchase button.

A few seconds later, your Reserved Instance will appear in the list.
You’ll see the name (or default name) and all the details when you click on it.

And that’s it! 🥳

I hope this was helpful.
Feel free to watch the video version here on YouTube to see it in action https://youtu.be/X8V_snV65bk

Thanks for reading, see you next time! đź‘‹

David Burgos

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