Saving pepper seeds

What is the best time to remove and save the seeds from peppers for next year? Do you leave a few peppers on the plants until they're "mature," and how can you tell if they are? Color? Shrinkage? Advice and suggestions appreciated.
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D. Arlington wrote:

I suppose when the peppers have turned to their ripe color, which is usually red, then the seeds should be ready to harvest. And the peppers ought to be better tasting unless you like green ones or yellow ones etc.
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Do all peppers turn red when mature? I noticed one of the yellow banana peppers is turning red. I better start marking them soon so they don't get mixed up.
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