When AWS reduces its On-Demand rate after you purchase an RI, what happens to your RI rate?

• A. RI rate remains the same; price drops do not undercut the RI price
• B. RI rate automatically drops to match On-Demand rate
• C. RI is eliminated and must be repurchased
• D. You receive a refund for the delta

Answer: (A)

Reserved Instances lock in a discounted hourly rate for a set term, and that rate is fixed at purchase. When AWS lowers the On-Demand price, it does not alter the price of an existing Reserved Instance. Your RI continues to be billed at the original RI price for the duration of its term, and you don’t receive a refund or automatic price adjustment. If you want to benefit from new lower prices, you’d typically consider purchasing a new RI at the lower rate (or explore Savings Plans for broader flexibility).