Question about tax saving fd and ppf?

if i anvest 1 lakh in a tax saving fd, and if it matures in 5 years will the 1 lakh and the interest earned be added to my income in that year?
Similarly if i invest 1 lakh per year in the ppf, after 15 years will the maturity value to added to the income of that year?

About Debt Mutual Fund?

I want to keep some money in a Debt Mutual fund,as they are less risky and i can withdraw the money at any time
Question is :
is it right time to invest into debt funds?
As interest rates are already at peak ?
how return is given ? say as interest rate today is around 9%, so if i invest some money today will i be getting 9% something return after one year or it depends on interest rate at the time of withdrawal.