Chile plants are fantastic!! Not only do these glorious plants produce a fabulous range of chile peppers, which come in all sorts of shapes & sizes, if harvested correctly, the seeds can provide you with 'free' plants from your favourite varieties for years to come.
5 quick steps to successful seed saving:
1. Always Wear Gloves - when handling chilli pods to avoid 'Jalapeno eye' or even worse Hunan hand!
2. Select only healthy and fully ripened pods - Avoid saving seeds from diseased plants, diseased pods, or pods which have softened with rot or are moldy. Some diseases/viruses can be passed down to the next generation of plants in the seed.
3. Isolate your plants to avoid cross pollination - Chile plants are promiscuous and cross pollinate readily with other varieties, particularly those of the same specie. You will need to isolate your plants if you want to guarantee seed which is 'true to type' (ie if the seeds are to produce new plants the same as their parent)
4. Dry your seeds throughly - The proper drying of seeds is essential if you want your seeds to last and ensure future plants are healthy. Excess moisture retained in the seed encourages life and the seeds will either slowly lose nutrients and vigour until they die, or simply rot.
5. Store your seeds correctly and label them - seeds stored correctly can maintain their vitality for many years.
For a more detailed guide to saving chile seeds check out the chileman guide
here