Create chipped wood text effects in photoshop

 

[1]- First Open a new blank document.
Here I have used document size 400x400 pixel and 96 resolution and
RGBcolor mode

[2]- Type any words help by Text tool . As shown below

[3]- Right click on this Text layer and select the Rasterize Layer .
As shown below.

[4]- Ctrl+Click on this layer

[5]- Create a new layer from the layer window . As shown below

[6]- go to Select menu >Modify >Contract > contract by 6 pixel

[7]- Fill the nice color , here I have used color code#F50303 . And deselect

[8]- Go to Filter menu>Noise>Add Noise , Amounte :50% , Distribution-Gaussian , Monochromatic

[9]- Now apply once again , go to Filter>Distort>Ripple, and apply the following settings .As shown below

[10]- Ctrl+Click on layer1 , and right click >select the Stroke
, look below apply the following settings - width :1px, Yellow color

 

[11]- Your image should look like this

[12]- Here double click on this text layer
and select the Bevel and Emboss from the
Layer style and apply the following settings

[13]- Your image should look like this

[14]- If you want than , you can change the Background color as shown below

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Reference: adobeusersite