I use winzip and winrar, i prefer rar though and sometimes .tar.gz for linux but cut the long story short id just go for rar.
This is a repeat, and someone needs to learn how to searc the forums But to answer your question, you should look into 7-zip. It is free and open source, it compresses to .zip, .rar, .7z and several other formats. The best part is that it is completely free and there are no hitches to using it. Check it out at http://www.7-zip.org/
Winrar and winzip are the best, or if you want to shrink your files in a very large size, try other software there are many application that are great out there. Just search and explore the web, you will find some.
I am always using winzip for my files compression. Actually not comfortable with winrar but i can see very well that majority with winrar DON.