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Deposits | 12 Months Ended
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Dec. 31, 2021
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 25, Supplementary Regulatory Capital Disclosure, for further information concerning these FDIC requirements. WEX Bank accepts its deposits through certain customers as required collateral for credit that has been extended (“customer deposits”) and through contractual arrangements for brokered and non-brokered certificate of deposit and money market deposit products. Additionally, beginning with October 2021, WEX Bank holds HSA deposits transferred from third-party depository partners to be managed and invested. See Note 4, Acquisitions, for more information regarding the Company’s April 2021 acquisition of contractual rights to serve as custodian or sub-custodian of these deposits. Customer deposits are generally non-interest bearing, certificates of deposit are issued at fixed rates, money market deposits are issued at both fixed and variable interest rates based on LIBOR or the Federal Funds rate and HSA deposits are issued at rates as defined within the consumer account agreements. 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) | 2021 |  | 2020
Interest-bearing money market deposits 1 | $ | 370,813 |  |  | $ | 439,894 |
Customer deposits | 129,180 |  |  | 116,694 |
HSA deposits 2 | 960,000 |  |  | — |
Contractual deposits with maturities within 1 year 1,3,4 | 566,427 |  |  | 354,807 |
Short-term deposits | 2,026,420 |  |  | 911,395 |
Contractual deposits with maturities greater than 1 year and less than 5 years 1,3,4 | 652,214 |  |  | 148,591 |
Total deposits | $ | 2,678,634 |  |  | $ | 1,059,986 |
Weighted average cost of HSA deposits outstanding | 0.03 | % |  | — | %
Weighted average cost of funds on contractual deposits outstanding | 0.48 | % |  | 1.81 | %
Weighted average cost of interest-bearing money market deposits outstanding | 0.20 | % |  | 0.27 | %
1 As of December 31, 2021 and 2020, all certificates of deposit and money market deposits were in denominations of $250 thousand or less, corresponding to FDIC deposit insurance limits. 2 Deposits held associated with the HSA custodial assets managed and invested by WEX Bank through an investment manager. 3 Original maturities range from 9 months to 5 years, with interest rates ranging from 0.12 percent to 3.52 percent as of December 31, 2021. At December 31, 2020, original maturities ranged from 1 year to 5 years with coupon interest rates ranging from 1.35 percent to 3.52 percent. 4 Includes certificates of deposit and certain money market deposits, which have a fixed maturity and interest rate. In accordance with regulatory requirements, WEX Bank normally maintains reserves against a portion of its outstanding customer deposits by keeping balances with the Federal Reserve Bank. However, due to currently relaxed Federal Reserve requirements enacted in response to the COVID-19 pandemic, there was no required reserve at December 31, 2021 and 2020. The following table presents the average interest rates on contractual deposits, HSA deposits and interest-bearing money market deposits for the years ended:
| December 31,
(in thousands) | 2021 |  | 2020 |  | 2019
Average interest rate: |  |  |  |  |
Contractual deposits outstanding 1 | 0.78 | % |  | 2.21 | % |  | 2.46 | %
HSA deposits | 0.03 | % |  | — | % |  | — | %
Interest-bearing money market deposits | 0.22 | % |  | 0.61 | % |  | 2.28 | %
1 Includes certificates of deposit and certain money market deposits, which have a fixed maturity and interest rate.

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- Definition The entire disclosure for deposit liabilities including data and tables. It may include a description of the entity's deposit liabilities, the aggregate amount of time deposits (including certificates of deposit) in denominations of $100,000 or more at the balance sheet date; the aggregate amount of any demand deposits that have been reclassified as loan balances, such as overdrafts, at the balance sheet date; deposits that are received on terms other than those in the normal course of business, the amount of accrued interest on deposit liabilities; securities, mortgage loans or other financial instruments that serve as collateral for deposits; for time deposits having a remaining term of more than one year, the aggregate amount of maturities for each of the five years following the balance sheet date; and the weighted average interest rate for all deposit liabilities held by the entity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 405 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=116652737&loc=d3e64164-112818 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 210 -Section S99 -Paragraph 1 -Subparagraph (SX 210.9-03.12) -URI http://asc.fasb.org/extlink&oid=120398452&loc=d3e534808-122878 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1406 -Paragraph (e) Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1406 + Details
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