INTERCHANGE FINANCIAL SERVICES CORPORATION

                             REGISTRATION STATEMENT

                                    FORM S-8


                                    EXHIBIT 5





                                         June 26, 2000


Interchange Financial Services Corporation
Park 80 West, Plaza Two
Saddle Brook, New Jersey 07663

         Re:      Interchange Financial Services Corporation
                  Outside Director Incentive Compensation Plan

Ladies and Gentlemen:

     We  refer  you to the  proposed  Registration  Statement  on Form  S-8 (the
"Registration  Statement")  under the  Securities  Act of 1993,  of  Interchange
Financial Services Corporation (the "Company")  pertaining to the offer and sale
by the Company of 100,000  shares of the Company's  Common  Stock,  no par value
(the "Common  Shares")  pursuant to options  granted from time to time under the
Company's Outside Director Incentive Compensation Plan (the "Plan").

     We have acted as counsel to the Company in connection with the Registration
Statement. In such capacity, we have examined the Registration Statement, copies
of the Company's  Certificate of Incorporation and amendments thereto, the Plan,
certificates  of officers of the Company and of public  officials and such other
corporate  records and documents as we have deemed necessary in order to express
the opinion set forth below.

     Based  upon the  foregoing  examination,  it is our  opinion  that upon the
issuance of certificates evidencing the Common Shares



Interchange Financial Services Corporation
June 26, 2000
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and delivery  thereof in exchange for payment of the option  prices set forth in
option  agreements  properly  granted under the Plan from time to time, and upon
satisfaction  of all  other  conditions,  if  any,  set  forth  in  such  option
agreements,  then the  Common  Shares  shall be validly  issued,  fully paid and
nonassessable.

     We  hereby  consent  to the  use  of  this  opinion  as an  exhibit  to the
Registration  Statement and the reference to our firm in prospectus  included in
such Registration Statement under the heading "Legal Matters".

                                         Very truly yours,

                                         NORRIS, McLAUGHLIN & MARCUS, P.A.

                                         /S/ Peter D. Hutcheon