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Deposits
 12 Months Ended
Dec. 31, 2020
Banking and Thrift, Interest [Abstract]  
Deposits
11.Deposits
    
    WEX Bank’s regulatory status enables it to raise capital to fund the Company’s working capital requirements by issuing deposits, subject to FDIC rules governing minimum financial ratios. See Note 26, Supplementary Regulatory Capital Disclosure, for further information concerning these FDIC requirements.
    WEX Bank accepts its deposits through: (i) certain customers as required collateral for credit that has been extended (“customer deposits”) and (ii) contractual arrangements with brokerage firms for both certificate of deposit and brokered money market deposit products. Customer deposits are generally non-interest bearing, certificates of deposit are issued at fixed rates and brokered money market deposits are issued at variable rates based on LIBOR or the Federal Funds rate.
    The following table presents the composition of deposits, which are classified as short-term or long-term based on their contractual maturities:
 December 31,
 (in thousands)20202019
Interest-bearing brokered money market deposits1
$439,894 $362,246 
Customer deposits 116,694 112,571 
Certificates of deposits with maturities within 1 year1,2
354,807 835,996 
Short-term deposits 911,395 1,310,813 
Certificates of deposit with maturities greater than 1 year and less than 5 years 1,2
148,591 143,399 
Total deposits $1,059,986 $1,454,212 
Weighted average cost of funds on certificates of deposit outstanding1.81 %2.57 %
Weighted average cost of interest-bearing brokered money market deposits0.27 %1.88 %
1 As of December 31, 2020, all certificates of deposit and brokered money market deposits were in denominations of $250 thousand or less, corresponding to FDIC deposit insurance limits.
2 Original maturities range from 1 year to 5 years, with interest rates ranging from 1.35 percent to 3.52 percent as of December 31, 2020. At December 31, 2019, original maturities ranged from 4 months to 5 years with interest rates ranging from 1.80 percent to 3.52 percent.
    In accordance with regulatory requirements, WEX Bank maintains reserves against a portion of its outstanding customer deposits by keeping balances with the Federal Reserve Bank. There was no required reserve at December 31, 2020, due to temporarily relaxed Federal Reserve requirements enacted in response to the COVID-19 pandemic. The required reserve was $24.9 million at December 31, 2019.
    The following table presents the average interest rates for deposits and interest-bearing brokered money market deposits:
Year ended December 31,
(in thousands)202020192018
Average interest rate:
Deposits2.21 %2.46 %1.91 %
Interest-bearing brokered money market deposits0.61 %2.28 %2.03 %
Sources of Funds
ICS Purchases
    From time to time, WEX Bank utilizes alternative funding sources such as Promontory Interfinancial Network, LLC’s ICS service, which provides for one-way buy transactions among banks for the purposes of purchasing cost-effective variable-rate funding without collateralization. WEX Bank may purchase brokered money market demand accounts and demand deposit accounts in amounts not to exceed $125.0 million through this service. There were no outstanding balances for ICS purchases at December 31, 2020 and 2019.