Allow Remote Desktop login with saved credentials

When trying to use saved credentials in Remote Desktop Connection you might receive this message:

Your credentials did not work. Your system administrator does not allow the use of saved credentials to log on to the remote computer because its identity is not fully verified. Please enter new credentials.

To be able to use saved credentials in this situation you need to do the following:

  1. Open Group Policy Editor (gpedit.msc)
  2. Navigate to Local Computer Policy\Computer Configuration\Administrative Templates\System\Credentials Delegation\
  3. Open Setting Allow Delegating Saved Credentials with NTLM-only Server Authentication, set it to Enabled click on button Show… and in Show Contents window add Value TERMSRV/*
  4. Run gpupdate command to update your policy.

Now you should be able to use your saved credentials.