Step 1
Start a new file (in this example 350x350 pixels) and enter a text (the font used in this example is: Times New Roman).
Step 2
Add a "Drop shadow" effect to the layer with these settings (right click on the layer in the layers-view and choose "Blending options...", if you can't find the layer-view, press F7 and it should appear, or disappear):
Step 3
Add an "Inner glow" effect to the layer with these settings:
Step 4
Add a "Bevel and Emboss" effect to the layer with these settings:
Step 5
Add a "Gradient overlay" effect to the layer with these settings:
Step 7
The result:
More Tutorials: 
