In this tutorial we’ll create Rounded Corners text effect, with this tutorial you can make rounded corners for any type of shapes:

1. Start by making a new file with the Width=1024 and Height= 768.

2. Select a square font, I used Arial Black with a size of 400 and write your text, I will write AND.

3. Go to Layer->Rasterize->Type.

4. Select the text layer, then Ctrl+Click on the layer thumbnail to select the text contour.

5. To add a layer mask Go to Layer->Layer Mask->Reveal Selection, pres Ctrl+D to deselect.

6. Select the layer mask by clicking on the layer mask thumbnail.

7. Go to Filter->Blur->Gaussian Blur and enter a radius of 10, then pres Ctrl+F two times to repeat the filter.

8. Go to Image->Adjustments->Levels and use the settings from below:

The final result should be like the one bellow: