Of course you should encrypt user settings like login, password or maybe email. I prefer SharedPreferences for storing, and yes it's enough in terms of security. 
I've found this two method on StackOverflow, it's fair enough:
protected String encrypt( String value ) {
    try {
        final byte[] bytes = value!=null ? value.getBytes(UTF8) : new byte[0];
        SecretKeyFactory keyFactory = SecretKeyFactory.getInstance("PBEWithMD5AndDES");
        SecretKey key = keyFactory.generateSecret(new PBEKeySpec(SEKRIT));
        Cipher pbeCipher = Cipher.getInstance("PBEWithMD5AndDES");
        pbeCipher.init(Cipher.ENCRYPT_MODE, key, new PBEParameterSpec(Settings.Secure.getString(context.getContentResolver(),Settings.System.ANDROID_ID).getBytes(UTF8), 20));
        return new String(Base64.encode(pbeCipher.doFinal(bytes), Base64.NO_WRAP),UTF8);
    } catch( Exception e ) {
        throw new RuntimeException(e);
    }
}
protected String decrypt(String value){
    try {
        final byte[] bytes = value!=null ? Base64.decode(value,Base64.DEFAULT) : new byte[0];
        SecretKeyFactory keyFactory = SecretKeyFactory.getInstance("PBEWithMD5AndDES");
        SecretKey key = keyFactory.generateSecret(new PBEKeySpec(SEKRIT));
        Cipher pbeCipher = Cipher.getInstance("PBEWithMD5AndDES");
        pbeCipher.init(Cipher.DECRYPT_MODE, key, new PBEParameterSpec(Settings.Secure.getString(context.getContentResolver(),Settings.System.ANDROID_ID).getBytes(UTF8), 20));
        return new String(pbeCipher.doFinal(bytes),UTF8);
    } catch( Exception e) {
        throw new RuntimeException(e);
    }
}
Couldn't find link, if I found, I'll edit my answer.
Edit: I found the source, you may have a look at all discussion on here.