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I'm working with an RDS instance with PostgreSQL, so while creating instances I  have specified the maximum retention period for auto Backup to be 7 days but I can see that it's an automated backup for the last 9 days in the snapshot.

Can some tell me what is going on?

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No need to worry about that, it's quite normal, Generally, one extra automated snapshot is retained to ensure the ability to perform a point-in-time restore to any time during the retention period. 

For more information, you can read here.

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