Curve text for thumbnails with Warp Text
Curved text reads better over a photo. PhotoVim’s Warp Text uses the same style list as Photoshop, and the text stays editable after warping so you can change the words or font later.
Steps
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Press T for the Type tool, click the canvas and type. A bold font stays readable when bent.

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With the type layer selected, open Type > Warp Text.

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Pick a style such as Arc, Flag or Wave. The baseline under the text bends with the preview.

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Set the amount with Bend and the tilt with Horizontal and Vertical Distortion. Sliders update the canvas as you drag.

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Click OK, then turn on Stroke and Drop Shadow in Layer Style so it reads over any background.

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Export as JPG from File > Export. A YouTube thumbnail is 1280 × 720.

After warping, double-click the text with the Type tool to change the words. To change the shape, open Warp Text again.
Questions
Does warped text open in Photoshop from a PSD?
A type layer with warp is saved as pixels. Type layers without warp round-trip as editable text.
Can I warp an image instead of text?
Edit > Transform > Warp bends an image layer, with the same list of shapes.