I have search the possibility of Munich - Zurich which cost 116€ for 2 persons return trip and use the Swiss pass from there. The other alternative is using the Bayern ticket (24€ x 2 for return trip = 48€) from Munich to Lindau and get a regular ticket from Lindau to St. Margrethen (5.80€ x 2 for 2 persons x 2 for return trip = 23.20€)and from St. Margrethen use the Swiss pass from there.
In the 2nd case, I would save ard 40€ but would have to take only RE, RB trains which means I would have to take the trains 1 hr plus earlier. These should be the additional problems for me if I choose the 2nd case.
Anyone have any other better ideas for low cost travelling?

Another cheap and scenic (though maybe not time-saving) possibility might be to use a Bayern Ticket to travel to Friedrichshafen, then take the Bodensee ferry from Friedrichshafen to Romanshorn, on the Swiss side. The train station is about 100m from the boat dock, with frequent trains to Zurich and Bern -- some trains even run direct to Brig. I THINK the boat trip is also covered by Swisspass. You can check the timetables (including the boat trip) at http://reiseauskunft.bahn.de Hope this helps!

Hi,

The Bayern ticket is valid to Friedrichshafen Stadt station? So there is no need for me to buy the additional regulat ticket from Lindau to Friedrichshafen Stadt station?

I think the overall duration will be about 2h 41 min more than if I took the regular fare from Munich to Zurich and then to Zermatt.

Sorry, I was thinking of the old Shoenes Wochenende Ticket. Of course the Bayern Ticket isn't valid in Baden-Wuerttemberg.

Personally, I'm a fan of "spend money to save time." The direct EC to Zurich will get you there most quickly. Also, I believe you can validate your Swiss Pass in Munich before you leave, and use it on the Swiss section of the Munich-Zurich trip. This means you would only need to buy a ticket to St Margarethen, instead of to Zurich.