diff --git a/src/components/ReportActionItem/ReportPreview.tsx b/src/components/ReportActionItem/ReportPreview.tsx
index 65cdb4a7d00b..79497e5fab88 100644
--- a/src/components/ReportActionItem/ReportPreview.tsx
+++ b/src/components/ReportActionItem/ReportPreview.tsx
@@ -365,7 +365,8 @@ function ReportPreview({
 
     const shouldShowSettlementButton = (shouldShowPayButton || shouldShowApproveButton) && !showRTERViolationMessage && !shouldShowBrokenConnectionViolation;
 
-    const shouldPromptUserToAddBankAccount = ReportUtils.hasMissingPaymentMethod(userWallet, iouReportID) || ReportUtils.hasMissingInvoiceBankAccount(iouReportID);
+    const shouldPromptUserToAddBankAccount =
+        (ReportUtils.hasMissingPaymentMethod(userWallet, iouReportID) || ReportUtils.hasMissingInvoiceBankAccount(iouReportID)) && !ReportUtils.isSettled(iouReportID);
     const shouldShowRBR = hasErrors && !iouSettled;
 
     /*
diff --git a/src/libs/ReportUtils.ts b/src/libs/ReportUtils.ts
index 9d8cbe19f097..6bffaca697c7 100644
--- a/src/libs/ReportUtils.ts
+++ b/src/libs/ReportUtils.ts
@@ -2833,7 +2833,7 @@ function getReasonAndReportActionThatRequiresAttention(
         };
     }
 
-    if (hasMissingInvoiceBankAccount(optionOrReport.reportID)) {
+    if (hasMissingInvoiceBankAccount(optionOrReport.reportID) && !isSettled(optionOrReport.reportID)) {
         return {
             reason: CONST.REQUIRES_ATTENTION_REASONS.HAS_MISSING_INVOICE_BANK_ACCOUNT,
         };
@@ -2841,7 +2841,11 @@ function getReasonAndReportActionThatRequiresAttention(
 
     if (isInvoiceRoom(optionOrReport)) {
         const reportAction = Object.values(reportActions).find(
-            (action) => action.actionName === CONST.REPORT.ACTIONS.TYPE.REPORT_PREVIEW && action.childReportID && hasMissingInvoiceBankAccount(action.childReportID),
+            (action) =>
+                action.actionName === CONST.REPORT.ACTIONS.TYPE.REPORT_PREVIEW &&
+                action.childReportID &&
+                hasMissingInvoiceBankAccount(action.childReportID) &&
+                !isSettled(action.childReportID),
         );
 
         return reportAction
diff --git a/src/pages/home/report/ReportActionItemMessage.tsx b/src/pages/home/report/ReportActionItemMessage.tsx
index 97eb942ba7c4..647c17f70d88 100644
--- a/src/pages/home/report/ReportActionItemMessage.tsx
+++ b/src/pages/home/report/ReportActionItemMessage.tsx
@@ -132,12 +132,14 @@ function ReportActionItemMessage({action, displayAsGroup, reportID, style, isHid
         Navigation.navigate(ROUTES.WORKSPACE_INVOICES.getRoute(policyID));
     };
 
+    const shouldShowAddBankAccountButton = action.actionName === CONST.REPORT.ACTIONS.TYPE.IOU && ReportUtils.hasMissingInvoiceBankAccount(reportID) && !ReportUtils.isSettled(reportID);
+
     return (
         <View style={[styles.chatItemMessage, style]}>
             {!isHidden ? (
                 <>
                     {renderReportActionItemFragments(isApprovedOrSubmittedReportAction)}
-                    {action.actionName === CONST.REPORT.ACTIONS.TYPE.IOU && ReportUtils.hasMissingInvoiceBankAccount(reportID) && (
+                    {shouldShowAddBankAccountButton && (
                         <Button
                             style={[styles.mt2, styles.alignSelfStart]}
                             success