PicMonkey is for me one of the best webapp for image editing. It has a wide variety of decorations and effects. But if you don't want to use a webapp, then you can download Gimp for free and make your own. I usually use Gimp to edit my stock photos for my video.
For my video thumbnails I'm using PhotoScape or Adobe Photoshop, I find Photoscape reailly easy software and free and with some options, just to put on higher level my experience with it and there will be whole bunch of thumbnails
Paint.net. It does a lot of what photoshop can do, and it's free. There's also a bunch of user-made plugins that you can add. I find the UI and general ease of use of Paint.net to be better than Gimp, but Gimp has some features that Paint.net lacks.
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