Change the user to postgres :

su - postgres

Create User for Postgres (in the shell and NOT with psql)

$ createuser testuser

Create Database (same)

$ createdb testdb

Acces the postgres Shell

psql ( enter the password for postgressql)

Provide the privileges to the postgres user

$ alter user testuser with encrypted password 'qwerty';
$ grant all privileges on database testdb to testuser;

You get that error because template1 is not the last argument. You can use -d to specify the database.

Use the database postgres instead of template1.

Try this:

"C:\Program Files\PostgreSQL\9.3\bin\psql.exe" -U postgres -d postgres -c "CREATE DATABASE t"

In the psql client, you can only run SQL statements and psql commands (which start with a backslash).

So, to create a database, you would have to run

CREATE DATABASE demo;

The semicolon in the end is required to tell psql that the statement is complete.

The prompt you see:

postgres-#

shows that you didn't do that and psql is waiting for a continuation line. You see that from the -.

To delete the input buffer and get back to the prompt

postgres=#

simply press Ctrl+C. Then you can enter the CREATE DATABASE statement.

createdb is not an SQL statement, but an executable (program) that you would call from the shell (or from cmd.exe on Windows).

So the alternative is not to start psql, but type

createdb -U postgres demo