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 Act of 1934

                        Date of Report: March 17, 1998

                   INTERCHANGE FINANCIAL SERVICES CORPORATION

             (Exact name of registrant as specified in its charter)

NEW JERSEY                        1-10508                    22-2553159
(State or other jurisdiction of  (Commission File Number)   (I.R.S. Employer
incorporation or organization)                               Identification No.)

PARK 80 WEST/PLAZA TWO, SADDLE BROOK, N.J.                   07663
(Address of principal executive offices)                     (Zip Code)

                                   (201) 703-2265

              (Registrant's telephone number, including area code)






Item 5.  Other Events

         On January 28, 1998, the registrant  issued the following press release
pertaining to the acquisition of The Jersey Bank for Savings by merger.

         SADDLE BROOK, N.J. - Interchange  Financial Services Corporation (AMEX:
ISB)  ("Interchange"),  which is the one-bank  holding  company for  Interchange
State Bank, its principal subsidiary, and The Jersey Bank for Savings ("Jersey")
jointly announced today that they have signed a definitive agreement under which
Interchange  will acquire  Jersey in a merger of Jersey into  Interchange  State
Bank.  As of 12/31/97  Interchange  had $548  million in assets and  operates 12
branches in Bergen County,  New Jersey. The Merger is intended to be a share for
share tax free  transaction and will be treated as a pooling of interests.  Each
of the  outstanding  shares of  Jersey  will be  exchanged  for one (1) share of
Interchange and the exchange ratio is fixed.  Taking into account the conversion
ratio of Jersey's convertible  Preferred Stock, the transaction will involve the
issuance  of  approximately  518,000  shares of  Interchange's  stock.  Based on
Interchange's  closing  stock price of $29.00 on  1/27/98,  the  transaction  is
valued at approximately $15 million .

         "We are pleased with this  acquisition, which fits our expansion plans
and reinforces our position as the largest independent community bank in Bergen
County", stated Anthony S. Abbate, President and Chief Executive Officer of
Interchange and Interchange State Bank.

         Richard  A.  Gilsenan,   Chairman  of  the  Board  of  Jersey,   noted:
"Interchange  makes an ideal partner for us since they are a Bergen County based
community  bank with a presence in our service area.  This clearly  benefits our
customers,  our  stockholders  and our community".  For the year ended 12/31/97,
Jersey had $6.4  million in equity,  $70 million in  deposits  and net income of
approximately  $425 thousand,  excluding  extraordinary  items.  Jersey is a $77
million asset savings bank with branches in Montvale and River Edge, New Jersey.

         The acquisition is conditioned  upon the satisfaction of necessary bank
regulatory  approvals,  the  approval  of the  shareholders  of Jersey and other
customary conditions. The parties anticipate that the merger will be consummated
late in the second, or early in the third, quarter of 1998.

         In connection with the merger agreement,  Jersey granted Interchange an
option to purchase  126,950 shares of Jersey's  authorized  but unissued  common
stock.







         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.

                           INTERCHANGE FINANCIAL SERVICES CORPORATION
                           By: S/S ANTHONY LABOZZETTA

                           Anthony Labozzetta, Executive Vice President and CFO

Date:    January 28, 1998