Where do you save templates to?

As in your theme? You should just save these in wp-content/themes/{yourtheme}

Sorry if I missed the point

no, remove it from there. They just go in your theme with all the other templates like index.php, page.php, etc

wp-content->themes-> your active theme

I’ve worked it out, thanks for you help.
Not sure if this applies to just the theme I am working on but in order for the template to appear the template file must be called

template-{template name}.php

and the meta data of the template file should be changed.

<?php 

/* Template Name: Example Template */