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))

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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.