I guess it depends what effects you are looking for. I would be inclined to use a Vector Drawing program like Corel Draw. You could also try Serif Pageplus 5.0 from click here. It includes a copy of Logo Plus, an OLE mini application for creating logos.
The software is completely free. You have to provide your email and name, etc., but you can unsubscribe from the advertising if you don't want it. The Serif Forum click here is a good place to get advice on using their programs. You don't have to purchase any Serif Software to join it.