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Databases · head to head

Amazon RDS vs Neon

Amazon RDS logo

Amazon RDS

Databases

Set up, operate, and scale a relational database in the cloud

From
Free
Rated
-
Full reviewWebsite
Neon logo

Neon

Cloud

Serverless Postgres for modern developers

From
Free
Rated
-
Full reviewWebsite

The short version

  • Each has a real cost: Amazon RDS no super-user access or direct host connectivity limits advanced customization; Neon compute pricing at $0.106-$0.222/CU-hour means costs scale directly with workload, unlike fixed-price alternatives
  • They diverge on capability: Amazon RDS covers Multiple DB Engines, Neon covers Serverless PostgreSQL.
  • Prices and features above were last checked on 30 August 2026.

Where they differ

Only the attributes on which Amazon RDS and Neon actually diverge.

Attributes where Amazon RDS and Neon differ
AttributeAmazon RDSNeon
Pricing modelusage-basedUnknown
PlatformsAWS Cloud, Multi-AZ, Multi-regionCloud
CategoryDatabasesCloud
Founded20062021

Identical on both: starting price (Free), free tier (Yes), user rating (Not yet rated).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Amazon RDS

  • Multiple DB Engines
  • Automated Backups
  • Multi-AZ Deployment
  • Encryption
  • Performance Insights
  • Automatic Scaling
  • MySQL
  • PostgreSQL

Only in Neon

  • Serverless PostgreSQL
  • Database Branching
  • Autoscaling
  • Bottomless Storage
  • Point-in-time Recovery
  • Connection Pooling
  • Instant Cloning
  • Vercel

Both cover

  • Read Replicas
  • Web support

What people use each for

The jobs each tool is most often brought in to do.

Amazon RDS

  • Transaction processingnot Neon
  • Data storagenot Neon
  • Application backendnot Neon
  • Reportingnot Neon
  • Data analyticsnot Neon

Neon

  • Serverless applicationsnot Amazon RDS
  • Development databasesnot Amazon RDS
  • Preview environmentsnot Amazon RDS
  • Testingnot Amazon RDS

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Amazon RDS

  • No super-user access or direct host connectivity limits advanced customization
  • Pricing unpredictable and expensive compared to GCP alternatives with equivalent features
  • Limited access to system procedures and tables requiring advanced permissions
  • No Oracle RAC (Real Application Clusters) support for high-availability Oracle deployments

Neon

  • Compute pricing at $0.106-$0.222/CU-hour means costs scale directly with workload, unlike fixed-price alternatives
  • Separation of compute and storage may add complexity to cost prediction compared to all-in-one plans

Pricing, plan by plan

Amazon RDS

Free
  • On-Demand Instances$undefined/per second
  • Reserved Instances$undefined/mo
  • Database Savings Plans$undefined/mo

Neon

Free
  • FreeFree
    • 100 CU-hours/month
    • 0.5 GB storage
    • 1 project
  • Launch$15/month
    • Pay-as-you-go compute
    • $0.35/GB storage
    • Multiple projects
  • Scale$31/month
    • Higher compute rates
    • 99.95% SLA
    • HIPAA compliance

Which should you pick?

Choose Amazon RDS if

  • You need multiple db engines.
  • You want to start without paying.
  • You work on AWS Cloud, Multi-AZ, Multi-region.
  • You also want automated backups.
Amazon RDS review

Choose Neon if

  • You need serverless postgresql.
  • You want to start without paying.
  • You work on Cloud.
  • You also want database branching.
Neon review

Questions people ask

Is Amazon RDS or Neon better?
Neither clearly leads. Amazon RDS starts at Free and Neon at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Amazon RDS or Neon?
Amazon RDS starts at Free and Neon at Free.
Does Amazon RDS or Neon run on more platforms?
Amazon RDS runs on AWS Cloud, Multi-AZ, Multi-region. Neon runs on Cloud.
Can I use Amazon RDS for free?
Both have a free tier, so you can try either at no cost before committing.
What is Amazon RDS best used for?
Amazon RDS is most often used for transaction processing, data storage, application backend, reporting. Of those, transaction processing and data storage are not what Neon is typically brought in for.
What can Amazon RDS do that Neon cannot?
Amazon RDS covers Multiple DB Engines, Automated Backups, Multi-AZ Deployment, Encryption. Neon covers Serverless PostgreSQL, Database Branching, Autoscaling, Bottomless Storage. Both handle Read Replicas, Web support.

Answered from the vendors’ own pages

Amazon RDS: What is included in the AWS Free Tier for RDS?

For signups before July 15, 2025: 750 hours per month of single-AZ database instance usage (12 months), 20 GB General Purpose SSD storage monthly, 20 GB automated backup storage monthly, available engines include MySQL, MariaDB, PostgreSQL, SQL Server Express Edition. For signups after July 15, 2025: choice between Free Plan or Paid Plan, $100 in credits plus up to $100 additional credits for activating foundational services, credits valid 12 months. Free Tier unavailable in AWS GovCloud (US) and China (Beijing) regions.

Source
Neon: What is Neon and what makes it different?

Neon is a serverless PostgreSQL database that separates compute and storage, enabling automatic scaling and instant database branching. After acquisition by Databricks in May 2025, pricing has been significantly reduced.

Source
Amazon RDS: How is data transfer priced in RDS?

Same Availability Zone (EC2 to RDS) is free. Multi-AZ replication is free. Cross-AZ within same region is 0.01 USD per GB in and out. Cross-region snapshots and backups follow standard data transfer charges.

Source
Neon: Does Neon offer a free tier?

Yes, Neon's free tier includes 100 compute units per month and 0.5 GB of storage. This is suitable for development and small projects.

Source
Amazon RDS: What database engines are supported by RDS?

Aurora, MySQL, PostgreSQL, MariaDB, Oracle, SQL Server, and IBM Db2. Pricing varies by engine.

Source
Neon: What are the paid plans and pricing for Neon?

Neon offers consumption-based pricing on Launch ($0.106/CU-hour, approximately $15/month) and Scale ($0.222/CU-hour, approximately $31/month) plans with separate storage billing at $0.35/GB-month. No monthly minimum required.

Source
Amazon RDS: What cost components are included in RDS monthly pricing?

DB instance hours (billed in 1-second increments, 10-minute minimum), storage per GB per month, I/O requests (Aurora and magnetic storage only), provisioned IOPS per month, backup storage, and data transfer fees.

Source
Neon: What features does Neon provide?

Neon includes git-like branching for database copies, point-in-time recovery, data anonymization for testing, managed authentication, serverless functions, and object storage that branches with projects.

Source
Neon: What compliance and reliability guarantees does Neon provide?

Neon's Scale tier offers 99.95% uptime SLA, HIPAA compliance, SOC2 certification, and private networking via PrivateLink at no extra cost.

Source
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