Popular forms of website templates are PSD (Photoshop) and HTML (web page) formats. PSD are not reusable like HTML Templates.  The text that is mentioned here cannot be modified.  PSD source file templates come in handy when one wants to make drastic customizations (changing out images and navigational menus) to a website template.

We need a copy of Photoshop to make changes and should know how to slice images into html documents. This is also called coding the web template. Obviously, PSD web templates require more than basic web design experience.

HTML format web templates are already in html format and consist of web pages and graphic images. Depending on how the web template is set up one might be able to easily change out a few images.

Customization is limited on HTML templates. HTML templates are very easy for beginning Webmasters because one simply has to add their text to a web template and they get a professional website.

This saves a lot of money to the users.  As the templates are reusable, can be modified and updated easily.  There are many sites, which are providing fee web templates.  In addition, you need to spend money on professionals to create your own website.  You are able to do it yourself.

When choosing between PSD and HTML web templates one has to take into consideration their web design skills. However, it is safe to begin with HTML as they can be altered any point of time. While PSD gives a more sophisticated look.