How to create Email Template in Salesforce ?

To create a text email template:

1. Do one of the following:
   • If you have permission to edit public templates, from Setup, click Communication Templates | Email Templates.
   • If you don’t have permission to edit public templates, at the top of any Salesforce page, click the down arrow next to your name. From the menu under your name, select Setup or My Settings—whichever one appears. Then from the left side of the page, click Email | My Templates.
2. Click New Template.
3. Choose the Text template type, and click Next.
4. Choose a folder in which to store the template.
5. Select the Available For Use checkbox if you would like this template offered to users when sending an email.
6. Enter an Email Template Name.
7. If necessary, change the Template Unique Name. This is a unique name used to refer to the component when using theForce.com API. In managed packages, this unique name prevents naming conflicts on package installations. This name can contain only underscores and alphanumeric characters, and must be unique in your organization. It must begin with a letter, not include spaces, not end with an underscore, and not contain two consecutive underscores. With the Template Unique Name field, a developer can change certain components’ names in a managed package and the changes are reflected in a subscriber’s organization.
8. Select an Encoding setting to determine the character set for the template.
9. Enter a Description for the template. Both template name and description are for internal use only.
10. Enter the Subject for the message.
11. Enter the text to appear in the message.
12. Optionally, enter merge fields in the template subject and text body. These fields will be replaced with information from your records when you send an email.
13. Click Save.