8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 8-K

                                 CURRENT REPORT
                       Pursuant to Section 13 or 15(d) of
                       The Securities Exchange Act of 1934

        Date of Report (Date of earliest event reported): December 7, 2006


                   INTERCHANGE FINANCIAL SERVICES CORPORATION
                   ------------------------------------------
             (Exact name of registrant as specified in its charter)


           New Jersey               1-10518                  22-2553159
           ----------               -------                  ----------
   (State or other jurisdiction   (Commission               (IRS Employer
          of incorporation)       File Number)           Identification No.)


           Park 80 West/Plaza Two, Saddlebrook, NJ             07663
           ---------------------------------------             -----
           (Address of principal executive offices)          (Zip Code)

       Registrant's telephone number, including area code: (201) 703-2265


                                 Not Applicable
                                 --------------
         (Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):

[ ] Written communications pursuant to Rule 425 under the Securities Act (17
    CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17
    CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
    Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
    Exchange Act (17 CFR 240.13e-4(c))

- -------------------------------------------------------------------------------



Item 5.04    Temporary Suspension of Trading Under Registrant's Employee
             Benefit Plans

Pursuant  to an  Agreement  and Plan of  Merger  between  Interchange  Financial
Services  Corporation  (the  "Company") and TD Banknorth  Inc. ("TD  Banknorth")
dated as of April 13,  2006,  the  Company  is  expected  to merge with a merger
subsidiary  of TD  Banknorth  (the  "Merger")  on or about  January 1, 2007.  In
connection with the Merger, a temporary suspension of transactions involving the
Company's  Common Stock, no par value (the "Common  Stock"),  in the Interchange
Bank Capital  Investment  Plan (the "401(k)  Plan" or the "Plan") is required in
order to allow the plan recordkeeper time to process,  exchange and allocate the
Merger consideration to each participant.

On December 7, 2006,  the Company sent a notice to its  directors  and executive
officers  informing them of a temporary  suspension of transactions by directors
and  executive  officers  involving  the  Common  Stock in  connection  with the
blackout  period  under the 401(k)  Plan.  The  blackout  period is  expected to
commence on Tuesday, December 26, 2006, and, assuming the Merger is completed on
January 1, 2007, is expected to end on Friday, January 19, 2007.

All inquiries  regarding  the blackout  period,  including  whether the blackout
period has started or ended,  may be  directed to Charles T. Field,  Senior Vice
President  and  CFO,  Interchange  Financial  Services   Corporation,   Park  80
West/Plaza II, Saddle Brook, NJ, 07663, Telephone: (201) 703-2265.

The notice, which was provided to the Company's directors and executive officers
in accordance with Section 306(a) of the Sarbanes-Oxley Act of 2002 and Rule 104
of  Regulation  BTR, is attached as Exhibit 99.1 to this Current  Report on Form
8-K.

Item 9.01    Financial Statements and Exhibits

The following is furnished as an exhibit to this Current Report on Form 8-K:

   Exhibit No.   Description
   ___________   ___________

   99.1          Notice sent to directors and executive officers of
                 Interchange Financial Services Corporation on December 7, 2006.








                                    SIGNATURE

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned hereunto duly authorized.


Date: December 7, 2006           Interchange Financial Services Corporation


                                 By: /s/ Charles T. Field
                                     ----------------------
                                 Name: Charles T. Field
                                 Title: SVP & Chief Financial Officer








                                  EXHIBIT INDEX


EXHIBIT NUMBER   DESCRIPTION
- --------------   -----------

99.1             Notice sent to directors and executive officers of
                 Interchange Financial Services Corporation on December 7, 2006.

EX-99

                   INTERCHANGE FINANCIAL SERVICES CORPORATION


                                   MEMORANDUM


TO:    Board of Directors - IFSC & IB             DATE:    December 7, 2006
       Senior Officers

FROM:  Charles T. Field                           SUBJECT: STOCK TRADING
       Senior Vice President & CFO                         -------------

                                                           BLACKOUT PERIOD
                                                           ---------------

- -------------------------------------------------------------------------------


1. Please be advised  that a BLACKOUT  PERIOD for the  Interchange  Bank Capital
Investment  Plan (the "401(k) Plan") will be imposed on  transactions  involving
Interchange  Financial  Services  Corporation (the "Company")  common stock fund
(the  "Company  stock  fund")  under the  401(k)  Plan.  This  blackout  period,
described in more detail  below,  is necessary  for the 401(k) Plan  trustees to
allow the plan  recordkeeper  time to process,  exchange and allocate the Merger
consideration  to each  participant as contemplated by the Agreement and Plan of
Merger,  dated  as of April  13,  2006,  by and  among TD  Banknorth  Inc.  ("TD
Banknorth") and the Company.  Under the  Sarbanes-Oxley Law enacted in 2002, the
directors and officers of the Company will generally be prohibited from engaging
in transactions  involving the Company equity securities  (including options and
other  derivatives  based on  Company  stock)  during  this  blackout  period in
addition to otherwise  complying  with the  Company's  Insider  Trading  Policy.
Dispositions of equity  securities of the Company in connection with the Merger,
including your election of merger consideration, are exempt under Sarbanes-Oxley
from the blackout period trading restrictions.

2. As a result  of the need to allow  the  plan  recordkeeper  time to  process,
exchange and allocate the Merger  consideration to each participant,  during the
blackout period,  participants in the 401(k) Plan will be temporarily  unable to
(1) make  exchanges into or out of the Company stock fund under the 401(k) Plan,
(2) take  distributions  of money  invested in the Company  stock fund under the
401(k) Plan,  and (3) take loans of money  invested in the Company  common stock
fund under the 401(k) Plan.

3. The blackout period for the 401(k) Plan is expected to commence  at 4:00 P.M.
EASTERN STANDARD TIME ON TUESDAY, DECEMBER 26, 2006, and, assuming the Merger is
completed on January 1, 2007,  is currently  expected to end on Friday,  January
19,  2007.  The  blackout  period  will be lifted  promptly if the Merger is not
completed. We will notify



Blackout Memo
December 7, 2006
Page 2 of 3




you of any changes  that affect the dates of the blackout  period.  In addition,
you can confirm the status of the blackout period by speaking with me.

4. Generally,  during the blackout  period,  you are prohibited from directly or
indirectly, purchasing, selling or otherwise transferring any equity security of
the Company that you acquired in  connection  with your service as a director or
an executive officer. "Equity Securities" are defined broadly to include options
and other derivatives.  Covered  transactions are not limited to those involving
your direct ownership, but include any transaction in which you have a pecuniary
interest.  You may be  deemed  to have an  interest  in  transactions  in equity
securities of the Company by your family members.  As indicated above,  however,
dispositions  of equity  securities of the Company in connection with the Merger
are excluded from the trading restrictions.

5. The prohibition  covers securities  acquired "in connection with service as a
director or  employment as an executive  officer."  This  includes,  among other
things, securities acquired under a compensatory plan or contract (such as under
a stock option, or a restricted stock grant), as a direct or indirect inducement
to  employment or joining the Board of Directors,  in  transactions  between the
individual  and the  Company,  and as  director  qualifying  shares.  Securities
acquired outside of an individual's  service as a director or executive  officer
(such  as  shares  acquired  when  the  person  was an  employee  but not yet an
executive officer) are not covered. However, if you hold both covered shares and
non-covered shares, any shares that you sell will be presumed to come first from
the covered  shares  unless you can  identify  the source of the sold shares and
show that you use the same  identification for all related purposes (such as tax
reporting and disclosure requirements).

6. The following are examples of transactions that you may not engage in during
the blackout period:

     o    Exercising  stock  options  granted  to you in  connection  with  your
          service as a director or executive officer;

     o    Selling Company stock that you acquired by exercising options;

     o    Selling  Company  stock that you  originally  received as a restricted
          stock grant.

7. There are certain exemptions, including:

     o    Purchases or sales under  10b5-1(c)  trading  plans (so long as you do
          not make or modify your  election  during the blackout  period or at a
          time when you are  aware of the  actual  or  approximate  dates of the
          blackout);

     o    Bona fide gifts, bequests and transfers pursuant to domestic relations
          orders;



Blackout Memo
December 7, 2006
Page 3 of 3




     o    Acquisitions and dispositions of equity  securities in connection with
          a merger, acquisition, divestiture, or similar transaction.

8. If you engage in a transaction that violates these rules, you can be required
to disgorge your profits from the transaction,  and you are subject to civil and
criminal penalties.



THE RULES  SUMMARIZED  ABOVE ARE COMPLEX,  AND THE CRIMINAL AND CIVIL  PENALTIES
THAT COULD BE IMPOSED UPON  DIRECTORS  AND  EXECUTIVE  OFFICERS WHO VIOLATE THEM
COULD BE SEVERE.

I  THEREFORE  REQUEST  THAT YOU CONTACT ME BEFORE  ENGAGING  IN ANY  TRANSACTION
INVOLVING THE COMPANY STOCK OR DERIVATIVES BASED ON THE COMPANY STOCK DURING THE
BLACKOUT PERIOD, OR IF YOU BELIEVE THAT ANY SUCH TRANSACTION IN WHICH YOU HAVE A
PECUNIARY INTEREST MAY OCCUR DURING THE BLACKOUT PERIOD.


If you have any questions,  please feel free to call me at (201) 703-2265,  Ext.
2033.




Charles T. Field

CTF/par